Cattle futures were unable to extend gains from the previous session, apparently pressured once again, in part by demand concerns.
Before settlement, Live Cattle futures closed an average of 80¢ lower.
Feeder Cattle futures were an average of $1.79 lower.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to 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 $186/cwt. and mostly $2-$3 lower in Kansas at $185-$187, where live delivered prices were $190-$190.50. FOB live prices are $3 lower in Nebraska at $193 and mainly $2-$3 lower in the western Corn Belt at mostly $193. Dressed delivered prices were $5 lower at $305.
The weighted average five-area direct FOB live steer price last week was $3.11 lower at $191.34. The weighted average dressed delivered steer price was $5.59 lower at $304.01.
Choice boxed beef cutout value was $3.12 higher Monday afternoon at $315.83/cwt. Select was $1.58 higher at $300.17/cwt.
Turning toward the close on Monday, Corn futures were 4¢ to 6¢ higher with support from lower than expected carryover in the monthly World Agricultural Supply and Demand Estimates (see below).
Through Jly ’25 contracts, Kansas City Wheat futures were were 5¢ to 6¢ lower. Soybean futures were mostly 12¢ to 16¢ lower.
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Major U.S. financial indices were mainly narrowly mixed Monday.
The Dow Jones Industrial Average closed 140 points lower. The S&P 500 closed fractionally lower. The NASDAQ was up 35 points.
Toward the close, West Texas Intermediate Crude Oil futures on the CME were $1.71 to $2.82 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) increased expected five-area average direct fed steer prices for this year, based on recent demand for fed cattle that was stronger than expected. Compared to the previous month’s estimates, in the August World Agricultural Supply and Demand Estimates (WASDE), ERS increased projected prices by $3 in the third quarter to $193/cwt. and by $2 in the fourth quarter to $190 for an annual average of $188.11, which was $1.25 higher.
This year’s beef production was projected 81 million pounds more than the previous month at 26.7 billion pounds, based on higher steer and heifer and cow slaughter, which more than offset lighter dressed weights.
ERS projected fed steer prices next year at $188 in the first quarter and $190 in the second quarter with an annual average price of $191.
Beef production for 2025 was lowered by 20 million pounds to 25.4 billion pounds, reflecting reduced steer and heifer slaughter in the first quarter. Next year’s projected total would be 1.3 billion pounds less (-4.8%) than this year’s projected total.
Other WASDE Highlights
The 2024/25 U.S. corn outlook was for larger supplies, lower domestic use, greater exports, and smaller ending stocks. Corn production for 2024/25 was forecast at 15.1 billion bushels, up 47 million from last month as a decline in harvested area of 700,000 acres was more than offset by increased yield. The season’s first survey-based corn yield forecast of 183.1 bushels per acre would be a record-high and was 2.1 bushels more than the previous month’s projection.
The season-average corn price received by producers was lowered 10¢ to $4.20 per bushel.