Last week’s stronger cash fed cattle prices helped Cattle futures continue higher on Monday.
Toward the close, Live Cattle futures were an average of $1.10 higher. Feeder Cattle futures were an average of $2.35 higher
Negotiated cash fed cattle trade was mostly inactive on light to moderate demand in all cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were steady to $3 higher in Kansas at $233-$236/cwt., mostly $1-$3 higher in Nebraska at $234-$236, and mostly $3 higher in the western Corn Belt at mainly $235. Prices in the Texas Panhandle were $234-$236; there was no recent tests for a comparison.
Dressed delivered prices were mostly $5 higher in Nebraska at mainly $370 and $2-$3 higher in the western Corn Belt at $365-$368.
The five-area direct weekly weighted average FOB live fed steer price was $2.20 higher at $234.70/cwt. The weekly weighted average dressed delivered fed steer price was $4.16 higher at $368.80.
Choice boxed beef cutout value was 2¢ lower Monday afternoon at $368.90/cwt. Select was $4.73 higher at $367.12.
Grain and Soybean futures were lower Monday on likely profit taking.
Toward the close, through near Sep contracts, Corn futures were fractionally lower to 2¢ lower. KC HRW Wheat futures were 9¢ to 11¢ lower. Soybean futures were 4¢ to 7¢ lower.
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Major U.S. financial indices closed higher on Monday.
The Dow Jones Industrial Average closed 313 points higher. The S&P 500 closed 34 points higher. The NASDAQ was up 100 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 3¢ to 37¢ lower through the front six contracts.
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Derrell Peel, Extension livestock marketing specialist at Oklahoma State University provides further perspective on the monthly Cattle on Feed report, in his weekly market comments.
Peel notes total feedlot placements during the last six months account for 92% of the current feedlot inventory and were down 8.2% year over year. As mentioned in the previous Cattle Current, feedlots with 1,000 head or more capacity placed 5.4% fewer cattle year over year in December, according to the latest report.
December marketings were 1.8% more than a year earlier. Peel explains it was the first increase in monthly marketings in eight months, but total marketings for the past six months were down 6.9% year over year.
The on-feed inventory Jan. 1 of 11.5 million head was 3.2% less than a year earlier, representing the 14thconsecutive month of declining inventories, according to Peel. “Average feedlot inventories for the past year (12-month moving average) are now at the lowest level since September 2018 and are down 3.8% from the cyclical peak in September 2022,” he says.
Listen to more or Peel’s market insights here.