Cattle futures rose Monday, building on the previous session’s firmer tone, following last week’s rout.
Toward the close, Live Cattle futures were an average of 97¢ higher. Feeder Cattle futures were an average of $2.45 higher.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $206/cwt. in the Southern Plains $208 in Nebraska and $205-$208 in the western Corn Belt. Dressed delivered prices were $328.
The weighted average five-area direct FOB live steer price last week was $2.52 lower at $207.05/cwt. The weighted average dressed delivered steer prices was $2.09 lower at $326.98.
Choice boxed beef cutout value was $1.63 higher Monday afternoon at $323.50/cwt. Select was $1.02 higher at $313.92.
Grain and Soybean futures were mixed Monday.
Toward the close and through Sep ’25 contracts, Corn futures were 3¢ to 5¢ higher with likely betting on bullish adjustments in the monthly World Agricultural Supply and Demand Estimates due out Tuesday.
However, Kansas City Wheat futures were 6¢ to 8¢ lower and Soybean futures were fractionally lower to 1¢ lower.
******************************
Major U.S. financial indices closed higher Monday, led by tech stocks.
The Dow Jones Industrial Average closed 167 points higher. The S&P 500 closed 40 points higher. The NASDAQ was up 190 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.19 to $1.47 higher through the front six contracts.
******************************
“Cow culling will determine herd dynamics in 2025,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “It depends both on what producers are trying to do and what Mother Nature will let them do – drought is still a large threat.”
Moreover, Peel explains heifer retention this year can set the stage for herd expansion beginning ion 2026.
“The inventory of replacement heifers suggests that there are few plans for increased heifer breeding going into 2025, but impulse heifer breeding during the year may result in additional bred heifers for 2026,” Peel says. “As with cow culling, it will depend on what producers are trying to do and whether drought limits those plans.”
Given that the pool of bred heifers was 1.7% less year over year Jan. 1, Peel explains cow slaughter will have to decrease at least 7% year over year to hold the beef cow inventory stable.