Monday markets
Markets were generally sideways today, although there was no reported cash trade.
Live cattle futures were mixed today. The October contract lost two pennies to close at $122.77, and the December contract gained 55 cents to close at $128.07.
There was no cash trade today. On the formula side, a total of 39,900 head averaging 872 lbs. averaged $200.44. Cash trade for the week ending Sept. 19 totaled 58,361 head. Live steers averaged $123.85, and dressed steers averaged $198.56.
“Significant trade is likely to be pushed off until the second half of the week, but the direction of both beef values and futures trade may contribute significantly to the direction and activity level of negotiated cash markets,” wrote Rick Kment, DTN contributing analyst, in his closing comments.
Today’s slaughter is projected at 119,000 head. Last week’s slaughter is estimated to reach 660,000 head—closer to the industry target than has been seen over recent weeks.
Actual slaughter for the first week of September totaled 620,995 head.
“Boxed beef prices typically are weak in September and choice boxes have dropped $30 since the late August high,” remarked Cassie Fish, market analyst in The Beef. “What is astonishing is that Choice boxes last week averaged $320 compared to $222 a year ago. No wonder retail beef prices are record high.”
Boxed beef prices were slightly higher today. On 84 loads, the Choice cutout gained $1.19 to $315.66, and the Select cutout increased a dollar to $280.75.
“On the fundamentals side of the business, packers continue with the 2021 business plan consisting of raking in record profits and leveraging captive cattle supply to limit the upside of cash fed cattle prices,” Fish said.
Feeder cattle
“The underlying support in feeder cattle futures continues to focus on the pressure that has already been built into the feeder cattle market, and overall cattle industry in general, as well as additional softness in grain prices,” Kment said.
Feeders were slightly higher. The September contract increased 12 cents to $155, and the October contract increased 30 cents to $156.67. The CME Feeder Cattle Index lost 85 cents to close at $153.75.
Corn prices were lower, with the December contract down 5 cents to $5.21 and the March contract down 4 cents to $5.29.
Iowa: Russell Livestock Market in Russell sold 1,938 head Monday. Compared to the previous sale held two weeks earlier, steers under 700 lbs. were sharply lower, while those over 700 lbs. were $4-7 lower. Heifers 450-500 lbs. sold $3 lower, and 900-950-lb. heifers sold $3 lower. Benchmark steers averaging 786 lbs. sold between $157.75-166.35 and averaged $164.59.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to the sale held a week earlier, feeder steers and heifers traded $2-3 lower. Benchmark steers averaging 720 lbs. sold between $150-154 and averaged $151.41.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to the last sale, feeder steers sold $1-3 higher, and feeder heifers sold $4-6 lower. Benchmark steers averaging 779 lbs. sold between $125-154 and averaged $150.65.
South Dakota: The Sioux Falls Regional Cattle Auction in Worthing, SD, sold 2,004 head Monday. Compared to a week earlier, feeder steers sold steady to $2 higher, except 850-900 lbs. sold $6-8 lower. Feeder heifers sold steady to $2 lower, except 700-800 lbs. sold $6-8 lower. Benchmark steers averaging 738 lbs. sold between $155-164 and averaged $161.39. — Anna Miller, WLJ managing editor
