Cattle futures closed higher Monday, buoyed by last week’s stronger cash fed cattle prices and the friendly Cattle inventory report (see below).
Toward the close, Live Cattle futures were an average of $2.72 higher.
Feeder Cattle futures were an average of $4.67 higher.
Negotiated cash fed cattle trade was inactive on light demand in all cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $240/cwt., which was $4-$6 higher in the Texas Panhandle, $4-$7 higher in Kansas, $4-$6 higher in Nebraska and $5 higher in the western Corn Belt.
Dressed delivered prices were $375-$378, which was $5-$8 higher in Nebraska and $8-$10 higher in the western Corn Belt.
Last week’s five-area direct weekly weighted average FOB live fed steer price was $4.74 higher at $239.44. The weekly weighted average dressed delivered fed steer price was $7.36 higher at $376.16.
Choice boxed beef cutout value was $2.65 higher Monday afternoon at $368.21/cwt. Select was $2.97 higher at $364.91.
Grain and Soybean futures continued lower Monday.
Toward the close, through near Sep contracts, Corn futures were 1¢ to 2¢ lower. KC HRW Wheat futures were 9¢ to 10¢ lower. Soybean futures were mostly 4¢ to 5¢ lower.
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Major U.S. financial indices closed higher on Monday with earnings bets for the week and the turn of the calendar.
The Dow Jones Industrial Average closed 515 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 130 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $2.65 to $2.84 lower through the front six contracts.
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As expected, markets views Friday’s USDA Cattle inventory report as friendly, with beef cows 1.0% less year over year.
“Nearly all inventory categories were down year over year, including the all cattle and calves total, down 0.4% compared to last year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “The 2025 calf crop was smaller than earlier projections at 32.9 million head, the smallest since 1941.”
There were 41,700 more (0.9%) beef replacement heifers at the beginning of this year compared to last. However, Peel explains the increase it too little to suggest herd growth. If anything, he says it indicates stabilization of the herd at current levels in anticipation of potential future growth.
“Little, if any, beef cow herd growth is possible in 2026. It will depend on beef cow slaughter and herd culling,” Peel says. “Beef cow slaughter decreased 40.5% in three years from 2022-2025, leading to a net culling rate of 8.4% in 2025. This low culling rate means that older cows will need to be culled going forward. Beef cow slaughter is expected to stabilize or perhaps increase some in 2026. That means that the slight increase in beef replacement heifers will be needed just to maintain the current herd or, at most, increase fractionally in 2026.”