Feeder Cattle futures were pressured sharply lower by rising feed costs once again Monday.
Feeder Cattle futures closed an average of $2.29 lower ($1.50 lower toward the back to $3.65 lower toward the front).
Corn futures closed mostly 7¢ to 15¢ higher
Soybean futures closed mostly 22¢ to 31¢ higher.
Live Cattle futures, closed an average of 55¢ lower, except for 17¢ higher in away Apr.
Negotiated cash fed cattle ranged from limited on light demand to slow on light demand through Monday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
Live prices were at $138/cwt. In the Southern Plains, $138-$140 in Nebraska and $139-$143 in the western Corn Belt at $139-$143. Dressed prices were $222.
The five-area direct average steer price was 37¢ higher at $139.32/cwt. The average steer price in the beef was 15¢ higher at $222.61.
Choice boxed beef cutout value was 90¢ higher Monday afternoon at $268.04/cwt. Select was 82¢ lower at $261.70.
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Major U.S. financial indices closed higher Monday, led by tech stocks.
The Dow Jones Industrial Average closed 103 points higher. The S&P 500 closed 36 points higher. The NASDAQ was up 271 points.
West Texas Intermediate Crude Oil futures on the CME closed an average of $3.78 higher.
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Declining beef and pork production may offset increased broiler production and lead to a decrease in total meat production in 2022, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his week market comments. He explains the current forecast from the Livestock Marketing Information Center (LMIC) pegs Beef production this year at 27.39 billion lbs., which would be 2.2% less than last year.
LMIC forecasts total red meat and poultry production at 106.25 billion lbs., which would be slightly less than last year.
If realized, Peel says it would be the first decrease in total meat production since 2014, following seven consecutive years of increasing production.
“High feed prices will impact all livestock industries and may moderate meat production going forward,” Peel explains. “Feed costs increased significantly in 2021 and will push even higher in the coming months. Beef will be additionally impacted by drought conditions and reduced production of pasture and hay. Drought may impact the timing of beef production with drought liquidation potentially increasing beef production temporarily but leading to a larger decline in beef supplies later.”