Recently stronger wholesale beef prices and last week’s mostly steady-to-firmer cash fed cattle trade helped Live Cattle futures edge an average of 15¢ higher Monday.
Despite lower Corn futures, Feeder Cattle futures meandered to a mostly lower close Monday, presumably pressured in part by the lack of cash direction with many auction barns closed for the holidays. Feeder Cattle futures closed an average of 84¢ lower (15¢ to $1.67 lower), except for an average of 35¢ higher in the back two contracts.
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 $155/cwt. in the Southern Plains and $155-$157 in Nebraska and the western Corn Belt. Dressed prices were $248.
Choice Boxed beef cutout value was $1.00 higher Monday afternoon at $263.83/cwt. Select was $3.12 higher at $238.57/cwt.
Corn futures weakened on positive South American moisture. They closed 2¢ to 5¢ lower through May ‘24 and then mostly fractionally mixed.
Soybean futures closed 12¢ to 20¢ lower through Sep ’23 and then mostly 2¢ to 8¢ lower.
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Major U.S. financial indices closed lower again Monday with carry-over pressure from continued recessionary fears.
The Dow Jones Industrial Average closed 162 points lower. The S&P 500 closed 34 points lower. The NASDAQ was down 159 points.
West Texas Intermediate Crude Oil futures (CME) closed 75¢ to 90¢ higher through the front six contracts.
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Although steer byproduct values softened recently, they remain significantly higher than the five-year average, according to the Livestock Marketing Information Center (LMIC).
“Last week it was $14.67/cwt., down 2% from the same week last year but 49% above the five-year average,” according to LMIC analysts, in the latest Livestock Monitor. “Since September, the value has averaged $14.73/cwt., slightly lower than the same period last year, which ranged from $15-16. The five-year average is typically below $10/cwt. during the latter part of the year.”
According to the LMIC folks, prices for livers, tongues and cheek meats provided support during the last several months. They add that hide prices held relatively steady over the same period.
The cow byproduct price remains elevated, too.
“Last week, the cow by-product value was $13.59/cwt., down 6% from last year but 51% higher than the five-year average. During the last year, the weekly cow by-product value has ranged from $12.54 to $15.19 with an average of $13.55/cwt.,” say LMIC analysts.