Cattle futures were mostly higher Monday but hesitantly.
Toward the close, Live cattle futures were an average of 58¢ higher, except for 22¢ lower in spot Oct. Feeder Cattle futures were an average of 98¢ higher, except for 65¢ lower in away Sep.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $242/cwt. in the Texas Panhandle and $242-$243 in the other regions. Dressed delivered prices were mainly $383.
The five-area direct weighted average FOB live fed steer price last week was $1.05 less at $242.55/cwt. The weighted average dressed delivered fed steer price was $2.50 less at $383.15.
Choice boxed beef cutout value was $1.07 lower Monday afternoon at $409.69. Select was 15¢ lower at $385.34.
Grain and Soybean futures were higher Monday with likely short covering and positioning ahead of Friday’s monthly World Agricultural Supply and Demand Estimates.
Toward the close and through away Jly contracts, Corn futures were 2¢ to 4¢ higher. Kansas City Wheat futures were mostly 11¢ higher. Soybean futures were 3¢ to 7¢ higher.
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Major U.S. financial indices closed higher Monday, led by tech stocks.
The Dow Jones Industrial Average closed 114 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 98 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 59¢ to 70¢ higher through the front six contracts.
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Calves and feeder cattle continued to sell mainly higher last week. Keeping in mind the fewer business days due to the holiday, USDA’s Agricultural Marketing Service (AMS) pegged the advance at mostly $5-$10 higher, with calf prices steady to $5 higher in some areas and $10-$12 higher in parts of the Southeast.
“In many areas producers are moving calves ahead of normal due to the record prices, and at the other end many are holding on as the upward trend continues …” according to AMS analysts.
Trade volume of 192,700 head at auction, direct and via video-internet was 1,000 head fewer than the previous weeks and about 24,000 head fewer than the same week last year.
The CME Feeder Cattle index was $2.56 higher week to week on Friday at $367.03.
“What may be more amazing than anything is that this market could easily continue increasing in the current environment. As cattle producers begin to retain heifers to grow the herd, there will be fewer feeder cattle available, which will restrict beef production despite the ever-increasing dressed weights,” says Andrew P. Griffith, agricultural economist at the university of Tennessee, in his weekly market comments. “As producers navigate the high price environment, it is important to manage price risk and financial risk … The basic aspect that makes risk management more important today than a few years ago is the quantity of dollars necessary to play in the game.”