WLI

Feeder Cattle futures softened Wednesday. Perhaps some of the softness had to do with the announcement yesterday that an E. coli outbreak in several states had been linked to a McDonald’s Quarter Pounder; more specifically, slivered onions (see below).

Toward the close, Feeder Cattle futures were an average of $1.95 lower. Live Cattle futures were an average of 16¢ lower, except for 5¢ higher in away-Oct.

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

Last week, FOB live prices were $188/cwt. in the Southern Plains and $187-$188 in the North. Dressed delivered prices were $296.

Choice boxed beef cutout value was $2.55 lower Wednesday afternoon at $321.41/cwt. Select was 97¢ higher at $295.77.

Turning to the grain complex, toward the close and through Sep ’25 contracts, Corn futures were fractionally higher to 3¢ higher. Kansas City Wheat futures were little changed. Soybean futures were 1¢ to 6¢ higher.

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Major U.S. financial closed sharply lower Wednesday, under pressure from rising Treasury yields.

The Dow Jones Industrial Average closed 409 points lower. The S&P 500 closed 53 points lower. The NASDAQ was down 296 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 69¢ to 76¢ lower through the front six contracts.

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The U.S. Centers for Disease Control and Prevention (CDC) reported Tuesday that an outbreak of E. coli O157:H7 had been linked to Quarter Pounders at McDonalds.

“The specific ingredient linked to illness has not yet been identified, but investigators are focused on two ingredients in particular: fresh slivered onions, and fresh beef patties,” according to the CDC … McDonald’s reported to CDC that they proactively removed the slivered onions and beef patties used for the Quarter Pounder hamburgers from stores in the affected states while the investigation continues. Quarter Pounder hamburgers in some states may be temporarily unavailable.”

All told, 49 people from 10 states (mostly Colorado and Nebraska) have gotten sick from the same strain of E. coli.

McDonald’s North America Chief Supply Chain Officer Cesar Piña shared the following internal message…

“…The initial findings from the investigation indicate that a subset of illnesses may be linked to slivered onions used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers. As a result, and in line with our safety protocols, all local restaurants have been instructed to remove this product from their supply and we have paused the distribution of all slivered onions in the impacted area.

“Out of an abundance of caution, we are also temporarily removing the Quarter Pounder from restaurants in the impacted area, including Colorado, Kansas, Utah and Wyoming, as well as portions of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, and Oklahoma.”

Cattle futures gained Tuesday, with support from the continued increase in Choice boxed beef cutout values.

Toward the close, Live Cattle futures were an average of 89¢ higher. Feeder Cattle futures were an average of $1.33 higher

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

Last week, FOB live prices were $188/cwt. in the Southern Plains and $187-$188 in the North. Dressed delivered prices were $296.

Choice boxed beef cutout value was $1.10 higher Tuesday afternoon at $323.96/cwt. Select was $1.41 lower at $294.80.

Corn and Soybean futures were higher again Tuesday with follow-through support.

Toward the close and through Sep ’25 contracts,

Corn futures were 4¢ to 7¢ higher. Kansas City Wheat futures were 3¢ higher. Soybean futures were mostly 12¢ higher.

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Major U.S. financial closed narrowly mixed Tuesday.

The Dow Jones Industrial Average closed 6 points lower. The S&P 500 closed 2 points lower. The NASDAQ was up 33 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were $1.26 to $1.68 higher through the front six contracts.

Cattle futures softened Monday, likely nudging chart resistance and perhaps with some early positioning ahead of Friday’s monthly Cattle on Feed report.

Toward the close, Live Cattle futures were an average of 50¢ lower. Feeder Cattle futures were an average of $1.10 lower.

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were mainly $1 higher in the Southern Plains at $188/cwt. and steady in the North at $187-$188/cwt. with dressed delivered prices also steady at $296.

The weighted average five-area direct FOB live fed steer price last week was $187.61/cwt., which was 40¢ more than the previous week. The weighted average dressed delivered steer price was 29¢ higher at $296.21.

Choice boxed beef cutout value was $2.21 higher Monday afternoon at $322.86/cwt. Select was $2.01 higher at $296.21.

Corn and Soybean futures were higher Monday, helped by recent export sales.

Toward the close and through Sep ’25 contracts, Corn futures were mostly 3¢ to 4¢ higher. Soybean futures were 4¢ to 10¢ higher. Kansas City Wheat futures were mostly 1¢ higher.

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Major U.S. financial closed mixed Monday, with primary pressure from a bounce in the 10-year Treasury bond yield.

The Dow Jones Industrial Average closed 344 points lower. The S&P 500 closed 10 points lower. The NASDAQ was up 50 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 94¢ to $1.14 higher through the front six contracts.

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Choice boxed beef prices continue on a tear, hitting $322.86/cwt. Monday afternoon, which was $26.49 than the recent low Sept. 26, and the highest since July.

“The weekly Choice boxed beef price is also at the highest level since July and has averaged 2.2% higher year over year and a record high for the year-to-date,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He adds prices have moved higher for a number of cuts across the carcass.

“The increase in boxed beef prices is perhaps even more surprising in the face of increased fed beef production,” Peel says. “Higher prices and increased quantities suggest that beef demand continues to be very robust.”

For perspective, Peel explains total fed slaughter is down 0.7% percent compared to last year, while steer carcasses have averaged 25.5 lbs. heavier and heifer carcasses have averaged 22.6 pounds for the year to date.

“The result of stronger than expected fed slaughter and heavier carcass weights has been an increase in fed beef production of 1.9% year over year thus far in 2024,” Peel says. “In fact, for the last 16 weeks, fed beef production has been 3.7% larger year over year.” 

Cattle futures closed higher Friday, helped along by lower grain futures prices, stronger wholesale beef prices and the week’s steady-to-higher cash trade.

Live Cattle futures were an average of 83¢ higher. Feeder Cattle futures were an average of $1.98 higher. However, week to week on Friday, Live Cattle were an average of 65¢ lower and Feeder Cattle futures were an average of $1.50 lower, unable to overcome the early-week technical correction.

Negotiated cash fed cattle trade was slow on light demand through Friday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were mainly $1 higher in the Southern Plains at $188/cwt. and steady in the North at $187-$188/cwt. with dressed delivered prices also steady at $296.

Choice boxed beef cutout value was $1.39 higher Friday afternoon at $320.65/cwt. Select was 68¢ higher at $294.20. Week to week on Friday, Choice was $9.48 higher and Select was $5.48 higher, with the Choice-Select spread the widest on Friday since last October.

Turning to the grain complex, Wheat and Soybean futures closed lower with improving weather in South America, harvest pressure, the stronger U.S. dollar and chatter that Russia was going to begin exporting wheat.

Kansas City Wheat futures were 11¢ to 15¢ lower. Soybean futures were 12¢ to 18¢ lower through Jly ’25 and then 10¢ to 11¢ lower. Corn futures were 1¢ to 2¢ lower.

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Major U.S. financial indices closed higher Friday, with continued bullishness.

The Dow Jones Industrial Average closed 36 points higher. The S&P 500 closed 23 points higher. The NASDAQ was up 115 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were $1.21 to $1.45  lower through the front six contracts.

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Calf prices strengthened contra-seasonally in recent weeks amid declining cattle numbers helped along by softer corn prices.

“It is rare to see calf prices escalate as the market moves into the fourth quarter of

the year, but this is no ordinary year,” Griffith says. “The market price of calves and feeder cattle attempted to encourage cattle producers to retain heifers this year to grow the cattle herd. However, most producers have been challenged with drought and marginal profits, which has resulted in little to no heifer retention … The opposite side of the coin is that calf prices may not increase in December and early January as rapidly as would normally be expected.”

Even so, based on relatively lower price levels in preceding weeks, the ERS reduced the projected fourth-quarter feeder steer price (750-800 lbs., Oklahoma City) in the October Livestock, Dairy and Poultry Outlook. Compared to the previous month, the ERS reduced the forecast fourth-quarter price by $2 to $253/cwt. and the annual average price by 41¢ to $250.59.

Projected feeder steer prices for 2025 were unchanged at $248 in the first quarter, $254 in the Second quarter and $263 in the third quarter with an annual average price of $258.75.

Cattle futures closed lower Tuesday, with likely profit taking and technical correcting. Toward the close, Live Cattle futures were an average of $1.19 lower. Feeder Cattle futures were an average of $3.08 lower

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

Last week, FOB live prices were $186-$187/cwt. in the Southern Plains and  $187-$188 in the North. Dressed delivered prices were steady at $296.

Choice boxed beef cutout value was $3.51 higher Tuesday afternoon at $316.83/cwt. Select was $2.99 higher at $292.09.

Grain and Soybean futures closed lower again, amid harvest pressure and lower outside markets, including Crude Oil.

Toward the close and through Sep ’25 contracts, Corn futures were 6¢ to 7¢ lower. Kansas City Wheat futures were 5¢ to 7¢ lower. Soybean futures were mostly 7¢ to 9¢ lower

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Calves and feeder cattle sold mixed at Tuesday auctions monitored by Cattle Current, in a limited test.

Feeder steers sold from $5 lower to $3 higher at Ozarks Regional Stockyards in West Plains, MO, where there were 2,219 head. Feeder heifers traded from $5 lower to $8 higher.

At Also in Missouri, at Kingsville Livestock Auction  The majority of the feeder offering sold steady to $5 higher with 2,082 head on offer. 

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Major U.S. financial closed lower Tuesday, taking a breather from the recent run.

The Dow Jones Industrial Average closed 324 points lower. The S&P 500 closed 44 points lower. The NASDAQ was down 187 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were $2.73 to $2.93  lower through the front six contracts.

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Nationwide last week, steers and heifers sold $1-$5/cwt.  higher on good to very good demand, according to the Agricultural Marketing Service (AMS). There were 249,600 head reported at auction, direct and via video-internet, compared to 258,200 head the same week last year.

“Buyers continue to want good long-weaned cattle with shots. Very dry,

dirty weaning pens have not discouraged buyers from purchasing the fresh bawling calves that are appearing in the markets,” AMS analysts explain.

At the same time, AMS analysts explain dry conditions are pushing some cattle earlier than planned.

According to the latest U.S. Drought Monitor, 43% of cattle are in areas affected by drought versus 46% a year earlier