Monday markets
Friday’s Cattle on Feed report has pressured cattle contracts all day. Placement numbers were up 6 percent from last year, 3-4 percent higher than analysts’ predictions. The result was the largest number of cattle on feed for Oct. 1.
Last week’s cash cattle trade volume totaled 93,000 head, down from the past few weeks’ numbers of 100,000 plus head. Trade today was mostly inactive on light demand. A total of 410 head traded at $103. A total of 29,600 head of formula cattle traded today, weighing 901 lbs. and averaging $171.20.
Live cattle futures contracts were trading slightly higher in the afternoon, but ultimately settled mixed. The October contract was up 62 cents to $103.97 and the December contract dropped 17 cents to $103.40.
Last week’s slaughter totaled 643,000 head, compared to the week prior’s 654,000 head and last year’s 640,000 head. Today’s slaughter is estimated at 118,000 head, on trend with last week.
Boxed beef prices were mixed on 135 loads, with the Choice cutout up 34 cents to $207.83 and the Select cutout down $2.91 to $188.49.
Feeder cattle
“Even though the corn market is only falling a mere $0.01 to $0.02 lower, it’s a sweet, sweet sight for the feeder cattle contracts,” remarked ShayLe Stewart, DTN livestock analyst. However, she noted, “Following last week’s softer prices and the moisture that accumulated late last week—this week’s run of calves could be lighter as cow-calf producers are carefully watching the market.”
The CME feeder cattle contracts were slightly up: The October contract gained 17 cents to $133.70 and the November contract gained 92 cents to $130.57. The December corn contract was down a penny and a half to $4.17. The latest CME Feeder Cattle Index was down 31 cents to $133.70.
Joplin Regional Stockyards in Carthage, MO, sold 2,741 head today. Compared to last week, steer and heifer calves sold $2-5 lower, and yearlings steady to $5 lower. Demand was moderate to light, and supply was light. A group of steers averaging 720 lbs. sold from $131-137.
Oklahoma National Stockyards in Oklahoma City, OK, sold 3,300 head today. Compared to last week, feeder steers and heifers traded mostly $3-5 lower on limited comparable sales. There were too few comparable trades on calves for an accurate test, however a lower undertone was noted. A cold front swept across the trade area, hampering livestock movement. Steers averaging 685 lbs. sold from $127-131.75. — Anna Miller, WLJ editor
