Cattle futures took a breather Monday as traders appeared to await further cash direction.
Live Cattle futures closed an average of 80¢ lower (32¢ to $1.77 lower).
Feeder Cattle futures closed an average of $1.47 lower (80¢ to $2.40 lower).
Negotiated cash fed cattle trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $183/cwt. in the Southern Plains, $183-$184.50 in Nebraska and $183-$184 in the western Corn Belt. Dressed delivered prices were $290.
The five-area direct weighted average FOB live steer price last week was 35¢ higher at $183.30/cwt. The average dressed delivered price was $1.25 lower at $290.36.
Choice boxed beef cutout value was $1.02 higher Monday afternoon at $306.30/cwt. Select was 57¢ lower at $295.17/cwt.
Corn futures closed mostly 3¢ to 5¢ higher.
KC HRW Wheat futures closed mostly 7¢ to 10¢ higher.
Soybean futures closed mostly 4¢ to 6¢ higher.
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Major U.S. financial indices closed lower Monday.
The Dow Jones Industrial Average closed 97 points lower. The S&P 500 closed 6 points lower. The NASDAQ was down 67 points.
West Texas Intermediate Crude Oil futures (CME) closed 35¢ to $1.23 lower through the front six contracts.
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Although the total cattle on feed inventory has been above year-ago levels since last fall, Kenny Burdine, Extension livestock economist at the University of Kentucky notes it has been decreasing since December is now close to the same year over year.
“The surprisingly high cattle on feed levels have largely been the result of high placement levels in September and October due to dry weather in some parts of the U.S. and high levels of live cattle imports,” Burdine explains, in the latest issue of Cattle Market Notes Weekly. “In addition to high placements levels last fall, increasing harvest weights in late 2023 also pointed to longer cattle feeding times.”
As mentioned recently in Cattle Current, although more than expected feedlot placements in January were 7% less than the same time a year earlier, according to USDA’s most recent Cattle on Feed Report.
“Cattle on feed numbers tend to decrease seasonally through spring and summer,” Burdine says. “That decrease is likely to be ever greater in 2024 as tighter feeder cattle supplies reach feedlots.”