Cattle futures closed higher, but less than many would have expected, given last week’s stronger cash fed cattle prices and the friendly Cattle on Feed report.
Toward the close, Live Cattle futures were an average of 78¢ higher. Feeder Cattle futures were an average of $1.04 higher.
Negotiated cash fed cattle trade was inactive on light demand in the North through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were generally $1-$3 higher in Nebraska at 228-$228.50/cwt. and $3 higher in the western Cron Belt at mainly $227. Dressed delivered prices were mainly $3-$8 higher in Nebraska at mostly $358 and mostly $15 higher in the western Corn Belt at mainly $365.
The five-area direct weighted average FOB live fed steer price was $2.87 higher at $227.06. The weighted average dressed delivered fed steer price was $8.27 higher at $360.79.
Choice boxed beef cutout value was $3.65 higher Monday afternoon at $369.44/cwt. Select was $4.87 higher at $357.56.
Grain and Soybean futures were lower Monday, led by Soybeans plunge on the increased competitiveness of Brazilian imports as the nation’s currency value declined.
Through late afternoon, and through the front four contracts, Soybean futures were mostly 13¢ to 15¢ lower. Corn futures were mostly 1¢ lower. Kansas City HRW Wheat futures were 6¢ to 7¢ lower.
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Major U.S. financial indices were higher Monday, supported by lower oil prices and tech stocks.
The Dow Jones Industrial Average closed 146 points higher. The S&P 500 closed 53 points higher. The NASDAQ was up 214 points.
Through mid-afteroon, West Texas Intermediate crude oil futures (CME) were 36¢ to $1.72 lower through the front six contracts.
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Derrell Peel, Extension livestock marketing specialist at Oklahoma State University lends perspective to the significant decline in feedlot placements last month.
“Feedlot placements have been generally decreasing since 2018 but have dropped dramatically since Jan 2025 from an annual average of 1.856 million head per month to the current average of 1.656 million head per month for the past 12 months,” Peel says. “This decrease of 10.8% means that, on average, 200,000 head less cattle per month are being placed in feedlots. In other words, total placements were down 2.392 million head in the most recent 12 months, compared to the period from February 2024-January 2025.”
Despite the sharp drop in feedlot placements, Peel notes the average monthly on-feed inventory has declined just 1.26% between January 2025 and October 2026.
“This is possible because of a similar decrease in the feedlot marketings rate,” he explains. “From January 2025 to September 2026, the average marketings rate has decreased from 15.5% to a record low 14.0%. Feedlot placements are down; but once in the feedlot, cattle are staying more days and are being marketed very slowly.”