Cattle futures bounced back some Monday with likely short covering.
At the close and before final settlement, Live Cattle futures were an average of $1.86 higher. Feeder Cattle futures were an average of $3.51 higher.
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 $2 lower in the Texas Panhandle at $182/cwt., $1-$2 lower in Kansas at $182, $3 lower in Nebraska at $184 and $2 lower in the western Corn Belt at $185.
Dressed delivered prices were $3-$4 lower in Nebraska at $293 and $4 lower in the western Corn Belt at $293.
The five-area direct weighted average FOB live steer price last week was $1.89 lower at $183.84. The average dressed delivered steer price was $3.78 lower at $293.09.
Choice boxed beef cutout value was 31¢ higher Monday afternoon at $300.88/cwt. Select was $4.20 lower at $291.34/cwt.
Turning to row crops, heading into the close, Grain and Soybean futures gave back gains from the previous session with likely producer selling.
Corn futures were 3¢ to 4¢ lower through May ‘25. Kansas City Wheat futures were 4¢ to 5¢ lower through May ’25. Soybean futures were 8¢ to 15¢ lower through Jan ’25.
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Major U.S. financial indices closed lower again Monday after support early in the session, as Treasury yields surged higher.
Advance estimates of U.S. retail and food services in March were up 0.7% month to month, according to the U.S. Census Bureau. That was significantly more than expected, adding to inflation bearishness. Retail sales were 4.0% more than the previous year.
The Dow Jones Industrial Average closed 248 points lower. The S&P 500 closed 61 points lower. The NASDAQ was down 290 points.
West Texas Intermediate Crude Oil futures (CME) was little changed through the front six contracts.
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Since the start of February, fed steer carcass weights increased counter-seasonally to 924 lbs., about 25 lbs. heavier year over year, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University. He adds that fed heifer carcass weights are 19 lbs. heavier than a year ago.
“Fed carcass weights are impacted both by long-term trends and current market conditions,” Peel explains in his weekly market comments. “Carcass weights have trended heavier for over 60 years with steer carcass weights increasing by an average of 4.0 lbs. per year, up over 240 lbs. from 660 lbs. in the 1960s to over 900 lbs. in recent years. Heifer carcass weights have increased by an average of 4.5 lbs. per year over the same period.”
Besides the trend over time, Peel says carcass weights are being boosted by moderating feed costs and the incentive to feed cattle longer as way to maintain feedlot inventories.
“Kansas feedlot data shows that steers are currently averaging 190 days on feed, up 9 days from one year ago and about 40 days longer than a decade ago,” Peel says. “Increasing carcass weights are the result of more days on feed combined with changing cattle genetics and use of feeding technology, such as implants, ionophores and beta agonists.”
On the plus side, more days on feed adds Quality Grade. However, longer feeding periods also decrease Yield Grade. Although steady the past four years, Peel points out the percentage of Prime and Choice cattle increased from about 68% in 2010 to current levels near 85%. During the same period, he says the percentage of Yield Grade 4 and 5 cattle has generally increased, from less than 9% to an average of nearly 20%.
“The average increase in Yield Grade 4 and 5 cattle has been especially pronounced in the last year,” Peel says. “Thus far in 2024, the percentage of Yield Grade 4 and 5 cattle has averaged 23.7%.”