Overall, futures traders seemed to look past the bearish placement number in Friday’s monthly Cattle on Feed report, seeming instead to focus on strong fundamentals, including last week’s higher cash fed cattle trade. However, the bounce higher in Corn futures helped dampen Feeder Cattle futures.
Live Cattle futures closed an average of 26¢ higher, except for unchanged in the back contract.
Feeder Cattle futures closed an average of $1.07 lower, (50¢ to $1.52 lower).
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 $3 higher in the Texas Panhandle at $183/cwt., $2-$3 higher in Kansas at $182-$183, $2 higher in Nebraska at $183 and $2-$4 higher in the western Corn Belt at $182-$184. Dressed delivered prices in Nebraska were $5 higher at $292 and $5-$7 higher in the western Corn Belt at $290-$292.
The five-area direct weighted average FOB live steer price last week was $2.60 higher at $182.95/cwt. The average dressed delivered steer price was $5 higher at $291.61.
Choice boxed beef cutout value was $1.18 higher Monday afternoon at $301.79/cwt. Select was $1.68 higher at $287.99/cwt.
Grain futures bounced back Monday, still trying to carve a bottom.
Corn futures closed 6¢ to 8¢ higher through Jly ’25 and then 1¢ to 3¢ higher.
KC HRW Wheat futures closed 7¢ to 15¢ higher through Mar ’25 and then mostly 4¢ higher.
Soybean futures closed 1¢ to 3¢ higher through near Aug and then mostly fractionally lower to 2¢ lower.
******************************
Major U.S. financial indices ended little changed but to the downside on Monday.
The Dow Jones Industrial Average closed 63 points lower. The S&P 500 closed 19 points lower. The NASDAQ was down 20 points.
West Texas Intermediate Crude Oil futures (CME) closed 80¢ to $1.09 higher through the front six contracts.
******************************
Beef demand was down slightly year over year in 2023, according to the demand index calculated by the Livestock Marketing Information Center (LMIC). Even so, in the latest Livestock Monitor, analysts say retail beef demand the last four years was the highest since 2000. Demand last year was still above index levels for 2000-19.
LMIC’s meat demand index is based on the Consumer Price Index level of 2000.
On the other side of the fence, LMIC analysts say retail pork demand had been gaining ground for several years after seeing a low point around 2012. However, it also faltered a touch last year.