Feeder Cattle futures continued higher Monday up an average of 87¢ with strong cash demand — 2¢ higher at the back to $1.67 higher at the front.
Live Cattle closed mixed on some likely profit taking. They were an average of 48¢ lower through the front four contracts to an average of 20¢ higher, except for unchanged in Oct.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $3 to $4 higher in the Southern Plains at $182/cwt., $3.75 to $4 higher in Nebraska at $180 to $182.50 and $3 higher in the western Corn Belt at $180-$182. Dressed delivered prices were $5 to $9 higher in Nebraska at $285-$289 and $5 higher in the western Corn Belt at $285.
The five-area direct weighted average FOB live steer price last week was $3.36 higher at $181.15. The weighted average dressed delivered price was $7.84 higher at $287.37.
Choice boxed beef cutout value was 4¢ higher Monday afternoon at $294.08/cwt. Select was $1.94 higher at $287.02/cwt.
Corn futures closed 1¢ to 2¢ higher.
Soybean futures closed mostly 3¢ to 7¢ higher.
KC HRW Wheat futures closed 2¢ to 4¢ lower through May ’25 and then unchanged.
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Major U.S. financial indices closed mixed Monday.
The Dow Jones Industrial Average closed 125 points higher. The S&P 500 closed 4 points lower. The NASDAQ was down 48 points.
West Texas Intermediate Crude Oil futures (CME) closed 3¢ to 8¢ higher through the front six contracts.
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Although inflation is moderating, Kevin Good, CattleFax vice president of market analysis says domestic consumer demand this year could be pressured by consumer debt and interest rates, cheaper alternative proteins, and economic uncertainty.
Speaking at the recent annual CattleFax Outlook Seminar, Good explained 2024 USDA All-Fresh Retail Beef prices are expected to average $7.90/pound. While higher beef prices may soften consumer purchasing habits, Good predicted the consumer preference for the quality, consistency and safety of U.S. beef will continue to support relatively strong demand. “Premiums for higher quality beef should remain as consumers have shown a willingness to pay for Choice grade or better beef,” he said.
From an international perspective, Good explained global protein demand has continued to increase and tighter global protein supplies should broadly support prices in 2024.
As reported in the last edition of Cattle Current, U.S. beef exports continue lower year over year, as domestic supplies decline and prices increase. CattleFax expects U.S. beef exports to decline 5% this year.