Monday markets
Cattle markets headed lower today with the news of a fire at the JBS Grand Island, NE, plant on Sunday night. As Cassie Fish, market analyst in The Beef, put it: “Plant outages were once a rarity but are now fairly commonplace.”
Live cattle futures dropped over a dollar each, with the October contract down $1.15 to $122.27 and the December contract down $1.07 to $127.15.
There was limited cash trade today, with only 301 head sold. There were not enough purchases for a market trend. On the formula side, a total of 53,700 head averaging 872 lbs. averaged $200.44.
Negotiated cash trade through Sept. 12 totaled 71,507 head, which seems to be the new average, compared to numbers seen months ago that were closer to 100,000 head. Live steers averaged $124.93, and dressed steers averaged $200.62. A total of 237,282 formula cattle sold through Sept. 12.
Slaughter for the day is projected at 114,000 head, several thousand head lower than usual due to the fire at the JBS plant in Nebraska. The fire at the plant’s rendering facility ceased operations for the A and B slaughter shifts today. Slaughter through last week is estimated at only 577,000 head.
“Although plant operations are likely to resume sometime this week, the overall reduction to procurement numbers (no matter how short) has an impact on overall price support,” remarked Rick Kment, DTN contributing analyst, in his daily midday comments.
Boxed beef prices were modestly lower on 125 loads. The Choice cutout lost $1.29 to $325.93, and the Select cutout lost $1.21 to $292.16.
“Unbelievably, the rib primal made another new all-time high last week, and the Choice/Select rib spread also made a new high, which is the primary contributor to the overall Choice/Select spread, pushing out to the record made during the pandemic shutdown in 2020,” Fish said.
“It may have been over a year since that historic disruption, but extreme market moves are still occurring with regularity.”
Feeder cattle
Feeders futures lost over $2 each today. The September contract dropped $2.05 to $152.20, and the October contract dropped $2.27 to $155.45. The CME Feeder Cattle Index gained 9 cents to close at $155.09.
“This downward market shift adds to the already bearish market slide seen over the last couple of weeks,” Kment said. “Any hope the weekend break would have helped rekindle buyer interest has been dashed as all nearby contracts are holding aggressive, triple-digit losses.”
Corn futures were also unable to find any momentum, with the September contract down 6 cents to $4.96 and the December contract down 4 cents to $5.13.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head Monday. Compared to the last sale two weeks earlier, feeder steers under 750 lbs. sold $3-4 lower, and steers over 750 lbs. sold steady. Feeder heifers sold steady. Benchmark steers averaging 777 lbs. sold between $151.50-157, averaging $153.97.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,750 head Monday. Compared to two weeks earlier, feeder steers and heifers sold $5-8 lower, and steer calves sold $8-10 lower. Heifer calves were not well tested. Benchmark steers averaging 770 lbs. sold between $146-154, averaging $150.96.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,020 head Monday. Compared to two weeks earlier, feeder steers and heifers sold unevenly steady. Benchmark steers averaging 770 lbs. sold between $150-160, averaging $158.03. — Anna Miller, WLJ managing editor
