June 13 was a tough day for the livestock complex, but in the days ahead, cattlemen hope the market will find support as we're set to see some of the first big video sales of the year.
This week, Superior Livestock Video Auction will host its annual Corn Belt Classic sale in South Sioux City, Nebraska, where 66,500 head are set to sell. Currently consigned to the sale are 13,670 head of feeder steers, 9,700 head of feeder heifers, 9,900 head of weaned calves, 18,300 head of unweaned calves, 14,600 head of beef/dairy crosses and 330 head of bred stock. Then, next week, Northern Livestock Video Auction will host its Early Summer Special on June 23 when 12,900 head are consigned to sell.
Both sales will be big market influencers as they'll give buyers and sellers an idea of where the market prices will start. Thankfully, some parts of the United States have received rain, helping to alleviate some drought conditions for cattlemen and help the 2022 corn crop. Weather will continue to be a driving force that the feeder cattle market must deal with because, even though some areas got rain, hay supplies are still desperately thin. Not all regions have the moisture they hoped. Of the top 10 beef producing states (Texas, Oklahoma, Missouri, Nebraska, South Dakota, Kansas, Montana, Kentucky, North Dakota and Florida), only four of the states (Kentucky, Missouri, North Dakota and Florida) don't still have some level of drought concern, although even three of those four have some abnormally dry pockets. Missouri is the only one okay for moisture, looking at the June 9 drought monitor. (https://droughtmonitor.unl.edu/…)
Even though Monday's markets closed lower, at the midsession point for the sale at Oklahoma National Stockyards, in Oklahoma City, feeder steers were trading steady to $3 higher and feeder heifers were trading $1 to $3 higher. Steer calves were trading unevenly steady, but heifer calves traded $3 to $5 stronger.
Even though the economy is uncertain and interest rates are bound to get higher, hopefully buyers will see the bullish outlook of the cattle market, especially the limited supplies of feeder cattle and calves coming down the pike.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
(c) Copyright 2022 DTN, LLC. All rights reserved.