Cattle futures closed mostly higher Monday with follow-through support from last week’s higher cash prices.
Toward the close, Live Cattle futures were an average of 56¢ higher (30¢ to $1.12 higher). Feeder Cattle futures were an average of 43¢ higher, except for an average of 64¢ lower in the back two contracts.
Negotiated cash fed cattle trade was mostly inactive on light to moderate demand through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $5 higher in Kansas at $230/cwt., $5 higher in Nebraska at $225-$230, and $5-$10 higher in the western Corn Belt at $225-$230. Dressed delivered prices in Nebraska were mostly $10-$15 higher at mainly $355 and $10 higher in the western Corn Belt at $350-$355 in a light test.
There was no reported established trade in the Texas Panhandle last week.
Last week’s five-area direct weighted average FOB live fed steer price was $6.98 higher at $228.19. The weighted average dressed delivered fed steer price was $11.01 higher at $353.62.
Choice boxed beef cutout value was $2.02 higher Monday afternoon at $359.46/cwt. Select was $3.08 higher at $347.30.
Grain and Soybean futures were mixed Monday.
Through mid-afternoon, Corn futures were 1¢ higher. KC HRW Wheat futures were 6¢ lower. Soybean futures were 1¢ to 4¢ lower.
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Major U.S. financial indices closed lower Friday, pressured by AI stocks.
The Dow Jones Industrial Average closed 41 points lower. The S&P 500 closed 10 points lower. The NASDAQ was down 137 points.
Through mid-afternoon West Texas Intermediate Crude Oil futures (CME) were 49¢ to 76¢ lower through the front six contracts.
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USDA’s Economic Research Service (ERS) lowered expected feeder calf prices for next year in the December Livestock, Dairy and Poultry Outlook. Compared to the previous month, the projected fourth-quarter price for Medium and Large #1 steers weighing 750-800 lbs. and selling at Oklahoma City was $4 less at $354/cwt.
“In November, the weighted-average price for feeder steers weighing 750–800 pounds at the Oklahoma City National Stockyards was $346.18/cwt., a decline of nearly $30 from October,” say ERS analysts. “The decline is notable as feeder steer prices set an all-time record of $383.48/cwt. in the second week of October. On a very low number of calves sold on Nov. 24, feeder steer prices dropped to $317.71/cwt. Two weeks later, on Dec. 8, prices rebounded to $343.96/cwt.”
For next year, the ERS forecasts the feeder steer price at $340 in the first quarter and $343 in the second quarter for an annual 2026 price of $345.
As mentioned in Cattle Current last week, the ERS lowered estimated five-area direct fed steer prices, compared to the previous month, in the December World Agricultural Supply and Demand Estimates (WASDE).
For this year, the fourth-quarter price dropped $8 to $226/cwt. and the annual average price declined $2 to $223.97. For 2026, projected prices declined $12 in the first quarter to $230, $9 in the second quarter to $234 and $12 in the third quarter to $236. The annual 2026 average price was $11 lower at $235. Price reductions were based on recent price data and the announced loss of packing capacity.
“Looking ahead to 2026, lower year-over-year placements of calves in feedlots are still expected for the fourth quarter of 2025 and in the first half of 2026, which are expected to support record prices next year, albeit lower than previously projected,” ERS analysts say.
Compared to the previous month, the ERS increased expected 2025 beef production by 194 million pounds to 25.95 billion pounds, based on the faster rate of fed and non-fed slaughter in the fourth quarter, as well as heavier dressed weights. That would be 1 billion pounds less than last year (-3.8%)
Estimated 2026 production of 25.73 billion pounds would be 225 million pounds less (-0.9%) than this year’s estimated total.