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.”