Cattle futures softened Monday, led by Feeder Cattle, perhaps pressured by profit taking.
Toward the close, Feeder Cattle futures were an average of $2.31 lower. Live Cattle futures were an average of 40¢ lower, except for an average of 20¢ higher in the back two contracts.
Negotiated cash fed cattle trade was at a standstill in all regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $2-$3 higher in the Texas Panhandle at $190/cwt., $3-$4 higher in Kansas at $190, $3-$4 higher in Nebraska at $190-$192 and $2-$5 higher in the western Corn Belt at $185-$190. Dressed delivered prices were $5 higher in Nebraska at $290 and $4-$5 higher in the western Corn Belt at $294-$305.
Choice boxed beef cutout value was $2.49 higher Monday afternoon at $313.01/cwt. Select was $2.70 higher at $277.00.
Grain and Soybean futures closed mixed Monday.
Toward the close and through Sep ’25 contracts, Corn futures were fractionally lower to 2¢ higher. Kansas City Wheat futures were fractionally lower to 2¢ higher. Soybean futures were 4¢ to 6¢ lower.
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Major U.S. financial indices closed mixed Monday with the lion’s share of support centered on tech stocks.
The Dow Jones Industrial Average closed 128 points lower. The S&P 500 closed 14 points higher. The NASDAQ was up 185 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were 15¢ to 18¢ higher through the front six contracts.
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With live cattle imports from Mexico to the United States expected to be suspended for at least three weeks — due to New World Screwworm — Derrell Peel, Extension livestock marketing specialist at Oklahoma State University says more Mexican imports are unlikely this year.
“The lack of Mexican cattle imports for the remainder of the year will have some immediate impact reducing an already tight feeder supply. However, some of the feedlot impact is not immediate because a portion of the imported Mexican cattle are lightweight and typically go through stocker/backgrounding programs before feedlot placement,” Peel explains in his weekly market comments. “In the January – September period this year about 24% of the imported cattle were less than 200 kilograms (441 pounds). It’s important to remember that most of the cattle not imported for the remainder of the year will enter the U.S. eventually, just with a delay.”
Barring a prolonged border closure or permanent changes to import regulations, Peel says a change in timing with a short-term tightening of supply will be the primary impact on the domestic feeder cattle market.
For perspective, Peel says imports of cattle from Mexico to the U.S. were 21.3% more year over year through the first nine months of 2024, suggesting total imports for the year of about 1.5 million head. He adds that Mexican cattle imports represent 3.3% of the total U.S. calf crop on average.