Cattle futures finally found some traction on Monday, boosted technical buying, more bullish outside markets and a couple of announcements.
First, union workers at the major West Coast ports of Los Angeles and Long Beach, voted to extend contract negotiations through Nov. 20, averting, at least for now, a strike that would have slowed U.S. meat exports.
Next, Tyson Foods announced its intent to establish a new long-term partnership with Allied Beef Company, a consortium of American ranchers. In anticipation of the partnership, Tyson Foods is moving forward with plans to fully reopen the second production shift at its Amarillo, Texas, beef facility. The company has already begun restoring select second-shift operations and expects the shift to be fully operational by summer 2027.
Toward the close, Live Cattle futures were an average of $3.01 higher. Feeder Cattle futures were an average of $6.30 higher.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Based on the bulk of regional trade last week, FOB live prices were $7 lower in the South Central region at $218/cwt., $6-$8 lower in Nebraska at mostly $216-$218 and $6-$14 lower in the western Corn Belt at $210-$218. Dressed delivered prices were $12-$22 lower in Nebraska at $330-$340 and $8-$25 lower in the western Corn Belt at mostly $340.
The five-area direct weighted average FOB live fed steer price last week was $8.30 lower at $215.43. The weighted average dressed delivered fed steer price was $13.80 lower at $338.39.
Choice boxed beef cutout value was $1.95 higher Monday afternoon at $352.74/cwt. Select was 17¢ higher at $353.73.
Grain and Soybean futures were lower Monday with likely skittishness ahead of Tuesday’s World Agricultural Supply and Demand Estimates.
Through late afternoon, and through the front four contracts, Corn futures were 2¢ to 3¢ lower. Soybean futures were 4¢ to 6¢ lower. Kansas City HRW Wheat futures were fractionally lower to 2¢ lower.
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Major U.S. financial indices closed sharply higher on Monday, helped by sliding oil prices and a bounce-back in tech stocks.
The Dow Jones Industrial Average closed 1,104 points higher. The S&P 500 closed 173 points higher. The NASDAQ was up 673 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were $2.93 to $4.08 lower through the front six contracts.