Feeder Cattle futures moved higher Monday, helped along by wilting Corn futures, while Live Cattle futures sought near-term direction. Feeder Cattle futures were an average of 62¢ higher.
Before settlement, Live Cattle futures were narrowly mixed, from 25¢ lower to 37¢ higher.
Negotiated cash fed cattle trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $188/cwt. in the Southern Plains $198 in Nebraska and mostly $198 in the western Corn Belt. Dressed delivered prices were $312 in Nebraska and mostly $312 in the western Corn Belt.
Choice boxed beef cutout value was 57¢ lower Monday afternoon at $321.49/cwt. Select was $2.51 higher at $304.82/cwt.
Grain and Soybean futures took a step lower Monday, pressured by the continued positive weather outlook. Toward the close and through Jly ’25 contracts, Corn futures were 11¢ to 12¢ lower. Kansas City Wheat futures were 12¢ to 16¢ lower. Soybean futures were 26¢ to 29¢ lower.
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Major financial indices closed higher Monday with investors apparently betting the failed assassination attempt on former President, Donald Trump, will lead to another term in office, accompanied by market-friendly policy.
The Dow Jones Industrial Average closed 210 points higher. The S&P 500 closed 15 points higher. The NASDAQ was up 74 points.
Heading into the close, West Texas Intermediate Crude Oil futures on the CME were 24¢ to 34¢ lower through the front six contracts.
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Wholesale beef prices are etching lower as markets enter the summer doldrums.
“Beef demand usually slows between the July 4 and Labor Day holidays as both summer grilling and high-end restaurant traffic slows in the heat of the summer,” explains Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “The early-July drop in boxed beef price is the result of seasonal weakness in the main middle meats: Tenderloin, Ribeye and Strip Loin. Wholesale prices for a number of other cuts continue to move higher, including for Tri-tip and Flank steak, along with numerous chuck and round cuts. Several lean round cuts are no doubt supported by the record-high price for lean trimmings that is pushing wholesale ground beef value to ever-higher record levels.”
Peel also notes beef production in June was 3.8% more year over year, driven by slightly higher fed cattle slaughter and heavier carcass weights.
“Carcass weights finally showed some decrease with the latest reported steer carcass weights the last week of June at 911 pounds, down from 924 pounds five weeks earlier,” Peel says. “Summer heat is likely a factor in declining carcass weights, as well. The decrease in carcass weights has been much slower than is typical through June and it is not clear what the seasonal pattern will be for the remainder of the year. Carcass weights typically begin increasing seasonally in July, but steer carcasses are already 27 pounds higher year over year, even with the recent decrease.”