A reprieve in Corn futures helped Feeder Cattle climb an average of $1.64 on Monday, further bolstered by last week’s strong cash trade.
Corn futures closed 9¢ to 10¢ lower through new-crop contracts and then mostly 1¢ to 2¢ lower. Pressure was likely due in part to reports that the first load of Ukraine grain exports in too many months left from the port at Odessa.
Live Cattle futures closed an average of 66¢ higher, with another day of higher wholesale beef prices.
Choice Boxed beef cutout value was $1.36 higher Monday afternoon at $270.60/cwt. Select was 65¢ higher at $242.90/cwt.
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.
Last week, live prices were $135/cwt. in the Southern Plains, $138 in Nebraska and $141-$145 in the western Corn Belt. Dressed prices were $225 in Nebraska and $224-$228 in the western Corn Belt.
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Major U.S. financial indices closed narrowly lower Monday, with pressure from energy stocks.
The Dow Jones Industrial Average closed 46 points lower. The S&P 500 closed 11 points lower. The NASDAQ was down 21 points.
CME WTI Crude Oil futures closed $3.04 to $4.73 lower through the through the front six contracts.
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Nationally, year-to-date beef cow slaughter was 14.1% more year over year through mid-July, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
“Beef cow slaughter would have to drop to a level less than 6% higher year over year for the remainder of the year before the annual beef cow slaughter would not be double-digit higher for the entire year,” Peel says.
Further, Peel explains heifer slaughter is up 3.9% year over year so far in 2022.
“The July 1 inventory of heifers in feedlots was up 2.9% over last year and confirms that heifers continue to be diverted into feeder channels rather being retained for breeding,” Peel explains. “The mid-year cattle inventory showed that the beef cow herd was down 2.4% year over year and the inventory of beef replacement heifers was down 3.5% from last year. The beef industry is poised to see the largest single year beef cow herd decrease in more than 35 years.”