Cattle futures closed lower Monday, pressured by the sinking equities and perhaps added pressure from last week’s Cattle on Feed report which indicated more placements than expected last month.
Toward the close, Live Cattle futures were an average of 34¢ lower, except for 20¢ higher in the back contract. Feeder Cattle futures were an average of $1.78 lower.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $4-$6 higher in the Texas Panhandle at $208-$210/cwt., $6 higher in Kansas at $210, $4-$6 higher in Nebraska at $212-$214 and $4 higher in the western Corn Belt at $212. Dressed delivered prices were $5-$12 higher in Nebraska at $332-$340 and $7-$8 higher in the western Corn Belt at $335.
The five-area direct weighted average FOB live fed steer price last week was $3.93 higher at $211.63/cwt. The weighted average dressed delivered fed steer price was $9.10 higher at $336.81.
Choice boxed beef cutout value was $2.00 higher Monday afternoon at $333.52/cwt. Select was $3.22 higher at $318.77.
Grain and Soybean futures were lower Monday, with little direction other than turbulence in the outside markets.
Toward the close and through Sep ’25 contracts, Corn futures were unchanged to 2¢ lower. Kansas City Wheat futures were 5¢ lower. Soybean futures were 6¢ to 8¢ lower.
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Major U.S. financial indices closed sharply lower Monday, fueled concerns about the growing conflict between the White House and Federal Reserve.
The Dow Jones Industrial Average closed 971 points lower. The S&P 500 closed 124 points lower. The NASDAQ was down 415 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were $1.29 to $1.38 lower through the front six contracts.
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The latest Cattle on Feed report could point to initial U.S. beef cow herd expansion, says Derell Peel, Extension livestock marketing specialist at Oklahoma State University. There were 4.38 million heifers on feed April 1, which was 3.9% less than the previous year. According to Peel, heifers on feed represented 37.6% of the mix, which was 4.3% less than January’s heifer inventory, representing the lowest quarterly total since July 2021 and the lowest percentage since April 2020.
“The heifer percentage has averaged over 39% for the past 16 quarters,” Peel says in weekly market comments. “This may be the first solid evidence that some heifer retention is beginning. It is not definitive nor very strong yet – the current heifer on-feed percentage is still fractionally above the long-term average percentage. During herd expansion the heifer percentage is expected to drop below 35% for several quarters. The next quarterly update in July may confirm the declining heifer on-feed percentage and heifer retention if the percentage drops below 37%.”