Cattle futures moved higher Monday, although many thought traders might see bearishness in more placements than expected in Friday’s Cattle on Feed report.
Heading into the close, Live Cattle futures were an average of 89¢ higher. Feeder Cattle futures were an average of $2.59 higher.
Negotiated cash fed cattle trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $2 lower in the Texas Panhandle at $183/cwt., $1-$2 lower in Kansas at $183-$184, $6 lower in Nebraska at $184 and $3 lower in the western Corn Belt at $184-$188. Dressed delivered prices were $5-$6 lower in Nebraska at $293-$295 and $3 lower in the western Corn belt at $293-$295.
The weighted average five-area direct FOB live steer price last week was $3.60 lower at $185.54/cwt. The weighted average dressed delivered steer price was $4.11 lower at $293.93.
Choice boxed beef cutout value was $1.44 lower Monday afternoon, at $315.90/cwt. Select was 27¢ lower at $300.19.
Grain futures were mixed Monday. Toward the close and through Jly ’25 contracts, Corn futures were 4¢ to 5¢ lower. Kansas City Wheat futures were fractionally lower to 3¢ higher. Soybean futures were 4¢ to 8¢ higher.
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Major U.S. financial indices closed mixed Monday, with follow-through support from expected interest rate cuts but pressure from tech stocks.
The Dow Jones Industrial Average closed 65 points higher. The S&P 500 closed 17 points lower. The NASDAQ was down 152 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.28 to $2.25 higher through the front six contracts.
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Inventory-based fed cattle supplies appear rather bearish through the third quarter and then bullish, according to Stephen Koontz, agricultural economist at Colorado State University, in the latest issue of In the Cattle Markets.
“The weakening feed grain market through this spring and summer incentivized feedlots to grow larger animals – costs of gain were dropping, and prices remained strong. And feedlots responded,” Koontz says. He explains the inventory of cattle on feed more than 150 days was modestly lower July but still more than the prior four years. He adds cattle on feed more than 120 days was sharply lower.
Referencing the recent Cattle on Feed report, Koontz also notes July feedlot placements of 1.70 million head — on the top side of expectations — points to market bullishness down the road.
“The number suggests early placement of animals from regions with drought-pressured forage, and perhaps tighter numbers later into the fall,” Koontz says. “Thus, the heavy placements are actually a bit bullish. The futures for feeder cattle reacted strongly with up moves on the fall run contracts.”