Monday markets
Live cattle futures started the week off on a higher note, and cash trade is expected to see more interest. Corn futures have crossed back over the $7 mark, sending feeders lower.
Live cattle futures were slightly higher, with the October contract up $145.75 and the December contract up 37 cents to $151.35.
Cash trade was inactive today, with only 117 head sold. There was no market trend available. On the formula side, a total of 50,200 head averaging 873 lbs. sold for an average of $226.33.
Cash trade through Sept. 11 totaled 82,382 head, a few thousand head more than a week earlier but still below the 100,000 head trend that was becoming more common. Live steers averaged $142.70, and dressed steers averaged $226.73.
“The cash cattle market is expected to see better interest this week as packers have shown lukewarm interest in the cash market over the last three weeks,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “But to continue to run processing speeds as aggressively as they are, packers are going to need more cattle and they’re likely going to have to chase after the cash market more aggressively this week.”
Slaughter through the day is estimated at 125,000 head, compared to last week’s 3,000 head (due to the Labor Day holiday). Last week’s total slaughter is projected at 604,000 head, the largest Labor Day week slaughter since 2007. Slaughter a year ago was only 113,000 head because of a fire at the JBS Grand Island, NE, plant, which halted slaughter for the day.
Boxed beef prices were higher on 97 loads. The Choice cutout gained $1.68 to close at $258.94, and the Select cutout gained $1.03 to close at $235.76.
Monday’s World Agricultural Supply and Demand Estimates report was favorable to the cattle market, with beef production for 2022 raised by 16 million lbs.
“To take a current snapshot of the industry: packer margins last week were the fourth largest in history behind 2019, 2020 and 2021. Boxed beef values, on the other hand, are the second highest in history,” wrote Cassie Fish, market analyst, in The Beef.
“So it is higher cash fed cattle prices that are the reason margins are fourth. In fact, cash cattle prices are the highest since 2015 and for any September, the second highest behind 2014. To say recent history in the cattle and beef packing industry rewrote (and continues to rewrite) the book is no understatement.”
Feeder cattle
Feeder cattle futures lost value over the day, with the September contract dropping $1.47 to close at $181.52 and the October contract dropping $2.45 to $183.12.
The CME Feeder Cattle Index lost 33 cents to close at $180.91.
Corn futures had some gains, crossing the $7 mark, with the September contract up 17 cents to $7.15 and the December contract up 10 cents to $6.95.
“Sale barns have been reporting larger runs as it’s evident some cattlemen are shipping their calves early,” Stewart said. “Given that this is the first full week of trade since the long Labor Day weekend, demand could be stronger in sales this week.”
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to two weeks earlier, feeder steers and heifers sold $5-9 lower at the mid-session. Benchmark steers averaging 763 lbs. sold from $182-184, averaging $182.85.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,200 head on Monday. Compared to the sale two weeks prior, at the mid-session, feeder steers were lightly tested and very uneven but mostly steady. Steer calves sold $4-8 lower. Feeder heifers sold steady to $2 higher in a light test, and heifer calves sold unevenly steady. Benchmark steers averaging 780 lbs. sold from $174-183, averaging $181.41. — Anna Miller, WLJ managing editor
