Cattle futures mostly extended gains Monday, buoyed by last week’s stronger cash fed cattle prices.
Toward the close, Live Cattle futures were an average of 68¢ higher, except for 47¢ lower and unchanged in the back two contracts.
Feeder Cattle futures were an average of 92¢ higher, except for $1.02 lower in the back contract.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $5 higher in the Southern Plains at mostly $245/cwt., mainly steady in the Nebraska at $240 and steady to $2 higher in the western Corn Belt at $240-$242. Dressed delivered prices were steady with the top end of the previous week’s range at $378.
Last week’s five-area direct weighted average FOB live fed steer price was $1.87 higher at $241.31. The weighted average dressed delivered fed steer price was $1.84 higher at $378.00.
Choice boxed beef cutout value was $1.57 lower Monday afternoon at $367.76/cwt. Select was 82¢ higher at $364.53.
Grain and Soybean futures were lower Monday with likely positioning ahead of Tuesday’s monthly World Agricultural Supply and Demand Estimates.
Toward the close, through near Sep contracts, Corn futures were fractionally lower to 1¢ lower. KC HRW Wheat futures were 2¢ lower. Soybean futures were fractionally lower to 5¢ lower.
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Major U.S. financial indices edged higher on Monday, led by tech stocks.
The Dow Jones Industrial Average closed 20 points higher. The S&P 500 closed 32 points higher. The NASDAQ was up 207 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 82¢ to 89¢ higher through the front six contracts.
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President Trump signed an executive order late last week to temporarily increase the tariff-rate quota for beef imported to the United States from Argentina (from 20,000 to 100,000 metric tons), in a stated effort to make domestic ground beef more affordable. However, it is unlikely to have much impact, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
“Imports from Argentina were already exceeding the 20,000-ton limit. It’s not clear how much additional Argentine beef might actually be imported this year,” Peel says. “Argentina consumes nearly three-quarters of beef production domestically. Of the roughly 24% of beef exported, exports to the U.S. are only about 7% of Argentine beef exports. Increased exports of beef to the U.S. will compete with domestic demand in Argentina, as well as exports to other markets. The impact in the U.S. is likely to be minimal. Beef imports from Argentina would only be about 4% of U.S. imports if the new quota is filled and mostly likely an increase in imports from Argentina will simply displace imports from another country, not changing the total much, if any.”
Listen to more of Peel’s market insights here.