Cattle futures closed mixed on Monday, as traders sorted through Friday’s bearish Cattle on Feed report, in tandem with the surge in negotiated cash fed cattle prices.
Before settlement, Live Cattle futures were an average of $1.48 higher in the front two contracts and then narrowly mixed, from an average of 19¢ lower to an average of 13¢ higher. Feeder Cattle futures were an average of 22¢ higher, except for unchanged to an average of 15¢ lower in three contracts.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $3-$4 higher in the Texas Panhandle at $189-$190/cwt. and $2-$5 higher in Kansas at $188-$191 with some as high as $198. FOB live prices were steady to $2 higher in Nebraska at $197-$198 and $3-$4 higher in the western Corn Belt at $197-$198.
Dressed delivered prices were $5-$6 higher in Nebraska at $310-$312 and $4-$5 higher in the western Corn Belt at $310, but with prices stretching as high as $314.
The weighted average five-area direct FOB live steer price last week was $2.29 higher at $194.84/cwt., which was $12.27 higher year over year. The weighted average dressed delivered steer price was $5.08 higher week to week at $310.55; it was $20.74 higher year over year.
Choice boxed beef cutout value was 25¢ higher Monday afternoon at $322.64/cwt. Select was $1.96 higher at $305.07/cwt.
Turning to row crops, grain futures edged lower Monday, while Soybean futures gained.
Heading into the close, through Jly contracts, Corn futures were mostly 1¢ lower. Kansas City Wheat futures were mostly 2¢ lower to fractionally higher. Soybean futures closed were 8¢ to 13¢ higher.
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Major U.S. financial indices closed mixed Monday, with support from bank and energy stocks.
The Dow Jones Industrial Average closed 260 points higher. The S&P 500 closed 16 points lower. The NASDAQ was down 192 points.
Heading into the close, West Texas Intermediate Crude Oil futures on the CME were 86¢ to 96¢ higher through the front six contracts.
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Heading into July, pasture and range conditions continue positive across much of the nation, according to the latest USDA Crop Progress report (week ending June 23), with 47% rated as Good (39%) or Excellent (8%), which was 3% more than a year earlier.
On the other side of the scale, 25% was rated as Poor (15%) or Very Poor (10%), compared to 24% a year earlier. Key cattle states with 35% or more rated as Poor or Very Poor included Arizona (37%), New Mexico (69%) and Texas (41%).
As for row crops, 97% of corn was in the ground, which was 1% less than a year earlier but 1% more than the five-year average. Sixty-nine percent was in Good (55%) or Excellent (14%) condition, compared to 50% a year earlier. Seven percent was rated as Poor (5%) or Very Poor (2%) versus 15% a year earlier.
Similarly, 97% of soybeans were in the ground, which was 2% less year over year but 2% more than the average. Sixty-seven percent were in Good (56%) or Excellent (11%) condition, compared to 51% a year earlier. Eight percent were in Poor (6%) or Very Poor (2%) condition, compared to 14% the prior year.
Winter wheat harvest was running ahead, too, with 40% in the bin, which was 19% more than the same time last year and 15% more than average. Fifty-two percent was in Good (42%) or Excellent (10%) condition versus 40% a year earlier. Fifteen percent was in Poor (10%) or Very Poor (5%) condition, compared to 28% at the same time last year.