Cattle futures gained again Monday, supported by further erosion in Corn futures.
Feeder Cattle futures closed an average of 79¢ higher (27¢ to $1.32 higher).
Live Cattle futures closed mixed, from an average of 7¢ lower to an average of 11¢ higher.
Corn futures closed mostly 2¢ to 6¢ lower.
Soybean futures closed fractionally mixed 1¢ lower.
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.
For the week, live prices were at $155/cwt. in the Southern Plains, $157-$159 in Nebraska, $157 in Colorado and $157-$158 in the western Corn Belt. Dressed prices were $248-$249.
Choice Boxed beef cutout value was $6.62 lower Monday afternoon at $243.31/cwt. Select was $3.45 lower at $221.11/cwt.
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Major U.S. financial indices closed sharply lower Monday with carryover concerns from last week that recently strong economic data will encourage the Fed to continue its aggressive stance on raising interest rates.
The Dow Jones Industrial Average closed 482 points lower. The S&P 500 closed 72 points lower. The NASDAQ was down 221 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.39 to $3.05 lower through the front six contracts.
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“Cattle slaughter and beef production are tightening in the final weeks of the year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Total weekly beef production was down 1.0% in the most recent weekly data. This is the largest weekly decline in weekly beef production since the first few weeks of the year. The expectations are to begin seeing consistent week-over-week decreases in beef production.”
The most recent weekly data continued pointing to fewer heifers being retained with steer slaughter down 6.4% compared to the same week last year, while heifer slaughter was up 4.6%, according to Peel.
“Beef production in 2022 has also been boosted by increased cow slaughter,” Peel says. “Beef cow slaughter is up 12.1% year over year for the year to date. However, beef cow slaughter has been up only about 3% the past two weeks, suggesting that herd liquidation may be slowing down.”