Monday markets
Today’s futures markets and other financial markets fell lower and didn’t provide any market direction for this week. Trade last week was between $103-105 live and $162-163 dressed. Cash markets were at a standstill today; it looks like trade may be steady at best this week. Packers did bring in 52,200 formula cattle today, weighing 893 lbs. and priced at $162.54.
“Last week’s negotiated purchases totaled 105,118 head. Of that 84,204 head are committed for delivery in the next two weeks, while the remaining 20,914 head are for delivery in the following 15 to 30 days,” said ShayLe Stewart, livestock analyst at DTN.
Stewart also said, “Trailing into Monday’s afternoon trade, livestock contracts are still feeling pressured—especially in the cattle sector. Some of the downward pressure is coming from lack of trader interest despite some strong incentives popping up Monday as corn prices are lower and current show lists fall in favor of cattle feeders.”
Last week’s slaughter was 654,000 head, 15,000 lower than the same week last year. Today’s slaughter is estimated to be 120,000 head, which appears to be maximum output in this COVID-19 world. Beef prices printed higher with Choice trading at $216.22 and Select at $205.82 on 106 loads. The Choice-Select spread is at $10.40.
Cassie Fish, market analyst at the Beef, said today, “Whether equities or commodities there is red everywhere this morning. Only the U.S. dollar index is holding together. CME cattle futures are down hard, leaving last week’s high as a stick out top. Most active Dec LC is back below the 10 and 40-day moving averages and have handily taken out last week’s low.
“The technical indicators clearly show the market is headed lower, perhaps setting up a test of the early September low and the 100-day moving average. The dramatic downside momentum of today’s sell-off across markets speaks to the likelihood of managed fund selling. All ag markets had just seen big rallies so were vulnerable to topple.
“The feeder cattle complex is balancing a tough market as there’s pressure on the board at $144, willing the market to trade lower, and the demand throughout the countryside isn’t even. Yearlings continue to sell for excellent prices (as they easily sold $3-4 higher last week), vaccinated and weaned spring-born calves are selling mostly steady but it’s the bawling, unweaned calves that are pulling the market lower. September feeders are up $0.20 at $141.07, October feeders are down $0.17 at $142.55 and November feeders are up $.20 at $142.72,” said Stewart.
Today’s sale at National Stockyards in Oklahoma City, OK, sold 5,000 head and reported their market compared to last week: Feeder steers under 800 lbs. $1-2 lower; over 800 lbs. $2 higher. Feeder heifers under 700 lbs. $1-3 lower; over 700 lbs. steady to $2 higher. Weaned steer and heifer calves lightly tested, and few sold steady.
Demand was moderate to good. Numbers somewhat lighter today as wheat planting has begun in Southern parts of the state. Others continue to work ground after recent rains. Still not into the calf run, though un-weaned calves are in supply and these continue to sell at sharp discounts from their weaned mates. — Pete Crow, WLJ publisher
