Cattle Current Daily—Jan. 7, 2025

Cattle Current Daily—Jan. 7, 2025

Cattle futures closed higher Monday on bullish fundamentals, following the previous session’s profit taking.

Toward the close, Feeder Cattle futures were an average of $1.82 higher. Live Cattle futures were an average of $1.48 higher.

Negotiated cash fed cattle trade ranged from inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service. 

Last week, FOB live prices were $4 higher in the Southern Plains at $197/cwt., $3-$4 higher in Nebraska at $200 and $3-$5 higher in the western Corn Belt at $200. Dressed delivered prices were $8 higher at $315.

Last week’s five-area direct weighted average FOB live steer price was $4.12 higher at $198.93. The weighted averaged dressed delivered steer price was $7.91 higher at $314.96.

Choice boxed beef cutout value was $1.86 higher Monday afternoon at $327.10/cwt. Select was $6.61 higher at $303.33.

Grain and Soybean futures closed higher Monday, buoyed by South American weather expectations.

Toward the close and through Sep ’25 contracts, Corn futures were 4¢ to 6¢ higher. Kansas City Wheat futures were 13¢ to 14¢ higher. Soybean futures were 1¢ to 8¢ higher.

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Major U.S. financial indices closed mixed Monday, with tech stocks providing the most support.

The Dow Jones Industrial Average closed 25 points lower. The S&P 500 closed 32 points higher. The NASDAQ was up 243 points.

Through late afternoon, West Texas Intermediate Crude Oil futures on the CME were 20¢ to 49¢ lower through the front six contracts.

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Whether or not heifer retention begins this year, Derrell Peel, extension livestock marketing specialist at Oklahoma State University says cattle prices should remain elevated for two to four more years.

Peel offers a couple of potential scenarios in his weekly market comments.

If heifer retention begins this year, Peel explains tighter feeder cattle supplies will push cattle prices and cow-calf returns higher. Retained heifer calves would lead to increased heifer inventories in 2026 and potential beef cow herd growth in 2027.

Conversely, if heifer retention fails to begin in 2025, Peel explains, “The cow herd will continue to dwindle, and cattle supplies will continue to slowly contract with higher cattle prices and a smaller industry until herd rebuilding begins.”

As it is, Peel notes the beef cow herd likely contracted last year, while limited supplies of replacement heifers suggest further contraction or stabilization at best in 2025.

“Historically, herd expansions require a year or two to gain momentum before herd inventories begin to increase. That process has not begun,” Peel says.

2025-01-06T16:56:20-06:00

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