Live Cattle futures closed an average of 66¢ higher Monday, receiving support from the major, performance-depressing winter storm moving toward the Northern Plains, and thoughts by some that cash cattle can crawl higher this week.
In the meantime, negotiated cash fed cattle trade ranged from limited on light demand to a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Live prices last week were at $138/cwt. in the Southern Plains and Colorado, at $138-$140/cwt. in Nebraska and at $140 in the western Corn Belt at $140. Dressed prices were $222.
Choice Boxed beef cutout value was $1.64 higher Monday afternoon at $272.11/cwt. Select was 4¢ lower at $260.29.
Strength in the Live pit helps drag Feeder Cattle futures an average of 34¢ higher, except for 25¢ lower in Aug.
Corn futures closed mostly 2¢ to 4¢ higher Monday, except for 4¢ and 2¢ lower in the front two contracts.
Incidentally, 32% of the winter wheat crop was rated as Good (29%) or Excellent (3%) in USDA’s Crop Progress report for the week ending April 10. That was 21% less than the same time last year. 36% was rated Poor (18%) or Very Poor (18%) compared to 17% the previous year.
******************************
Major U.S. financial indices sank Monday as traders positioned ahead of Tuesday’s monthly Consumer Price Index and the beginning of corporate earnings season.
The Dow Jones Industrial Average closed 75 points lower. The S&P 500 75 closed points lower. The NASDAQ was down 299 points
West Texas Intermediate Crude Oil futures (CME) closed $2.80 to $3.97 lower through the front six contracts.
******************************
Beef demand, especially demand for ground beef continues to boost cutter cow values.
For perspective, analysts with the Livestock Marketing Information Center (LMIC) say national cutter cow values were $75/cwt. to start the second quarter — the highest since late 2015 — and up from $52 at the beginning of the year.
“The five-year average of 2016-2020 averaged a cutter cow price of $55/cwt. nationally across all weights,” LMIC analysts explain, in the latest Livestock Monitor. “Other cow quality grade values have improved, as well. For instance, they note values for premium white cows, those fed a concentrated diet before heading to slaughter, are 25% higher than last year. Breaker (75% lean) cow prices are 29% higher year over year and prices for boner cows (85% lean) are up 14%.
Cow cutout values mirror the trajectory of cull cow prices.
“Last week, the boxed cow cutout was $230/cwt., 31% ahead of the five-year average and 21% higher than last year,” says LMIC analysts. “Strong demand for beef has helped support these numbers, as well as consumers buying more ground beef, seasonally. The cutout offers a snapshot of all the quality grades.
“More specifically, trimmings from lean cows are fed into the ground 90% lean beef markets, which have seen higher prices since the summer of 2021. Lean 90% ground beef averaged $363/cwt., compared to the five-year average of $222. These prices are expected to remain elevated through summer because of time of year and the relative value of other beef products in the meat case.”