WLI

Heading into the close and before settlement, Live Cattle futures were an average of 27¢ higher through the front five contracts, buoyed by last week’s stronger cash trade and then unchanged to an average of 61¢ lower.

Feeder Cattle futures were an average of $1.28 lower with pressure from nearby Corn contracts.

Heading into the close Monday Grain and Soybean futures continued higher as traders appeared to bet on planting progress delays in the weekly Crop Progress report (see below).

Corn futures were mostly 7¢ to 10¢ higher through near Sep.

Kansas City Wheat futures were mostly 18¢ to 20¢ higher through Jly ’25.

Soybean were 21¢ to 32¢ higher through near Sep.

Negotiated cash fed cattle trade ranged from inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were $2 higher in the Southern Plains at $184/cwt., $2 higher in Nebraska at $186-$187 and $1 higher in the western Corn Belt at $185-$187. Dressed delivered prices were steady to $1 higher in Nebraska at $294-$295 and mostly $1 higher in the western Corn Belt at mainly $295.

The weekly weighted average five-area direct FOB live steer price was $1.59 higher at $185.74. The average dressed delivered steer price was 26¢ higher at $294.65.

Choice boxed beef cutout value was $4.56 higher Monday afternoon at $298.76/cwt. Select was $2.10 higher at $289.75/cwt.

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Major U.S. financial indices extended gains Monday, with follow-trough support from Fridays jobs report, which was weaker than expected, elevating hopes the Fed can cut interest rates sooner than later.

The Dow Jones Industrial Average closed 176 points higher. The S&P 500 closed 52 points higher. The NASDAQ was up 192 points.

West Texas Intermediate Crude Oil futures on the CME were 54¢ to 58¢ higher  through the front six contracts.

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Pasture and range is starting the season off in significantly improved condition than last year, according to the latest USDA Crop Progress report for the week ending May 5.

Nationwide, 46% of pasture and range was rated as Good (38%) and Excellent (8%), compared to 33% a year earlier. 25% was rated Poor (15%) and Very Poor (10%) compared to 37% the same week last year.

However, corn planting lost some ground last week with 36% in the ground compared to 42% at the same time last year and 39% for the five-year average. 12% was emerged versus 10% a year earlier and 9% for average.

As for soybeans, 25% were planted, which was 5% less than the same week last year but 4% more than average. 9% of soybeans were emerged, compared to 7% a year earlier and 4% for average.

Winter wheat condition held about steady week to week and was significantly improved year over year. 50% was rated as Good (44%) or Excellent (6%), compared to 29% a year earlier. 16% were rated as Poor (11%) or Very Poor (5%) compared to 44% a year earlier. 43% of the crop was headed, compared to 34% the previous year and 32% for average.

Cattle futures mostly edged higher Friday, extending gains from the previous session and supported by higher cash fed cattle prices.

Live Cattle futures closed an average of 43¢ higher., except for 12¢ lower in the spot month. They were an average of $2.39 lower week to week on Friday.

Feeder Cattle futures closed narrowly mixed, from an average of 32¢ lower in the front three contracts to an average of 13¢ higher. They were an average of $5.38 lower week to week on Friday.

Negotiated cash fed cattle trade in the Southern Plains ranged from slow on light demand in the Texas Panhandle to moderate on moderate demand in Kansas through Friday afternoon, according to the Agricultural Marketing Service. Elsewhere, trade was slow on light demand.

For the week, FOB live prices were $2 higher in the Southern Plains at $184/cwt., $2 higher in Nebraska at $186-$187 and $1-$3 higher in the western Corn Belt at $187. Dressed delivered prices were steady to $1 higher in Nebraska at $295 and $1 higher in the western Corn Belt at $295.

Choice boxed beef cutout value was $1.30 higher Friday afternoon at $294.20/cwt. Select was 33¢ lower at $287.65/cwt. However, week to week on Friday, Choice was $2.94 lower and Select was $1.07 lower.

Total estimated cattle slaughter of 619,000 head last week was 6,000 more than the previous week but 2,000 head less than the same week last year. Year-to-date estimated total cattle slaughter of 10.8 million head was 509,700 head fewer (-4.5%). Year-to-date estimated beef production of 9.0 billion pounds was 214.1 million pounds less (-2.3%).

Turning to row crops, Grain and Soybean futures continued higher Friday as traders added weather premiums.

KC HRW Wheat futures closed 11¢ to 13¢ higher through May ’25. and then mostly 6¢ to 7¢ higher.

Corn futures closed mostly 3¢ higher.

Soybean futures closed 9¢ to 14¢ higher through Aug ’25 and then mostly 7¢ higher.

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Major U.S. financial indices surged higher Friday, buoyed by a weaker jobs report than expected, which boosted hopes about reining back inflation.

Total non-farm payroll employment increased by 175,000 in April, and the unemployment rate was little changed at 3.9%, according to the Employment Situation Summary from the U.S. Bureau of Labor Statistics.

Average hourly earnings in April for all employees on private non-farm payrolls increased by 7¢ (+0.2%) to $34.75. Over the past 12 months, average hourly earnings increased by 3.9%.

The Dow Jones Industrial Average closed 450 points higher. The S&P 500 closed 63 points higher. The NASDAQ was up 315 points.

West Texas Intermediate Crude Oil futures on the CME closed 35¢ to 84¢ lower through the front six contracts.

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Although 10% less year over year, March U.S. beef exports were the most of 2024, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). March exports totaled 102,218 metric tons (mt). Export value was $889.9 million, down 0.3% from a year ago but the highest in nine months.

March beef export value equated to $454.62 per head of fed slaughter, the highest since mid-2022.

Beef exports for the first quarter (Jan. through Mar.) totaled 311,865 mt, down 4% from the first quarter of last year. Export value increased 6% to $2.48 billion.

“Beef demand in the Caribbean was outstanding in March, and we continued to see a strong rebound in the Middle East as well as some positive signs in Korea and Japan, where the foodservice recovery is making progress,” says Dan Halstrom USMEF president and CEO. “It’s a challenging situation in terms of supply availability, but the value U.S. beef commands internationally is very encouraging – as evidenced by March export value climbing to more than $450 per head.”

U.S. pork exports of 260,430 mt in March were 0.1% more than a year earlier. Pork export value was 2% higher year over year at $740.8 million.

Cattle futures rallied back Thursday, fueled by confirmation that no traces of Bovine Influenza A virus (BIAV) were found in ground beef samples by USDA’s Animal and Plant Health Inspection Service (APHIS).

“Samples were collected at retail outlets in the states in which dairy cattle herds have tested positive for H5N1 influenza virus. The samples were analyzed by APHIS using polymerase chain reaction (PCR), to indicate whether any viral particles were present. No virus particles were found to be present,” according to the APHIS statement.

Live Cattle futures closed an average of $2.37 higher.

Feeder Cattle futures closed an average of $3.26 higher.

Negotiated cash fed cattle trade ranged from slow on light demand in the North to a standstill in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices are $2-$3 higher in Nebraska at $187/cwt. and $1-$3 higher in the western Corn Belt at $187. Dressed delivered prices are steady to $1 higher at $294-$295.

FOB live prices in the Southern Plains last week were $182.

Choice boxed beef cutout value was 64¢ lower Thursday afternoon at $292.90/cwt. Select was 9¢ lower at $287.98/cwt.

Net U.S. beef export sales the week ending Apr. 25 of 22,500 metric tons for 2024 were a marketing-year high — up 48% from the previous week and up 38% from the prior four-week average. Increases were primarily for South Korea, Japan, Taiwan, China and Mexico.

Turning to row crops, Grain and Soybean futures surged higher Thursday with weather premiums tied to planting delays.

KC HRW Wheat futures closed mostly 11¢ to 12¢ higher.

Corn futures closed mostly 4¢ to 9¢ higher.

Soybean futures closed 22¢ to 34¢ higher through Jan ’25 and then 14¢ to 19¢ higher. Weekly U.S. export sales provided added support. Net sales of 414,000 metric tons for 2023-24 were up 96% from the previous week and were 45% more than the prior four-week average.

Cattle futures tried to overcome the Bovine Influenza A virus headlines but couldn’t, taking another step lower Wednesday.

Heading into the close, Live Cattle futures were an average of $1.64 lower (67¢ to $2.30 lower). 

Feeder Cattle futures were an average of $3.55 lower.

Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $182/cwt. in the Southern Plains, $184-$185 in Nebraska and $184-$186 in the western Corn Belt. Dressed delivered prices were $294-$295.

Choice boxed beef cutout value was 83¢ lower Wednesday afternoon at $293.54/cwt. Select was $1.88 lower at $288.07/cwt.

Heading into the close, Corn futures were 1¢ to 3¢ higher through Jly ‘25. Soybean were mostly 5¢ higher through Jly ‘25.  Kansas City Wheat futures were mostly 6¢ to 10¢ lower through Jly ‘25.

Cattle futures softened Monday, taking a break from last week’s gains and amid likely profit taking and month-end positioning.

Heading into the close, Live Cattle futures were an average of 67¢ lower (32¢ to $1.35 lower), except for 77¢ higher in spot Apr. Feeder Cattle futures were an average of 42¢ lower.

Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were steady in the Southern Plains at $182/cwt., mostly $1-$2 higher in Nebraska at $184-$185 and steady to $2 higher in the western Corn Belt at $184-$186. Dressed delivered prices were $2 higher at $294-$295 in Nebraska and $294 in the western Corn Belt.

The weighted average five-area direct FOB live steer price last week was $1.48 higher at $182.67. The weighted average dressed delivered steer price was $2.04 higher at $294.39.

Choice boxed beef cutout value was 39¢ higher Monday afternoon at $297.53/cwt. Select was $1.49 higher at $290.21/cwt.

Heading into the close, Corn futures were fractionally lower through Mar ‘25. Soybean were 1¢ to 4¢ higher through Nov. ‘24. 

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Major U.S. financial indices closed higher Monday, supported by tech stocks and corporate earnings once again.

The Dow Jones Industrial Average closed 146 points higher. The S&P 500 closed 16 point higher. The NASDAQ was up 55 points.

Heading into the close West Texas Intermediate Crude Oil futures on the CME were 28¢ to 48¢ higher through the front six contracts.

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Assuming no further complications from Bovine Influenza A virus (BIAV) in dairy cattle, Derrell Peel, Extension livestock Marketing specialist at Oklahoma State University says cattle markets should move forward based on fundamentals.

“Calf prices normally reach a seasonal peak at the end of the first quarter, so steer calf prices may not recover fully to the March highs,” Peel explains in his weekly market comments. “However, the strong general uptrend in cattle markets likely means calf prices may move more sideways for a period before moving higher in the later part of the year. Concern about summer grazing conditions could temper stocker demand in the next month or so.”

Peel notes heavyweight feeder cattle prices have bounced more than calf prices since BIAV applied pressure, buoyed by recovery in Feeder futures and seasonal tendencies for higher prices from now through the middle of the year.

“Despite the unexpected shocks that have impacted feeder markets, feeder prices are proving to be very resilient,” Peel says. “Feedlot demand is strong as feedlots chase limited feeder cattle supplies, spurred on by declining feedlot cost of gain.  For all feeder cattle, both calves and big feeders, the highest prices of the year are expected in the fourth quarter.”