Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were steady to $1 higher in the Texas Panhandle at $190/cwt., unevenly steady in Kansas at $190, steady to $1 higher in Nebraska at $198 (some up to $200) and mainly steady to $1 higher in the western Corn Belt at mostly $198.
Dressed delivered prices were steady to $2 higher in Nebraska at $312 and $2 higher in the western Corn Belt at $312. Prices ran as high as $317 in both regions.
Last week’s five-area direct weighted average FOB live steer price was 97¢ higher at $195.81. The weighted average dressed delivered steer price was $2.92 higher at $313.47.
Choice boxed beef cutout value was $2.86 higher Monday afternoon at $329.18/cwt. Select was $1.91 higher at $306.41.
Cattle futures softened again Monday with sluggish interest. Before settlement, Live Cattle futures were an average of 87¢ lower. Feeder Cattle futures were an average of $2.05 lower.
As for the grain complex, short covering seemed to be the order of the day. Toward the close and through Jly ’25 contracts, Corn futures were mainly fractionally higher to 1¢ higher. Kansas City Wheat futures were 10¢ to 13¢ higher. Soybean futures were 7¢ to 12¢ higher.
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Major U.S. financial indices gained on Monday, helped along by tech stocks.
The Dow Jones Industrial Average closed 50 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 146 points.
Heading toward the close, West Texas Intermediate Crude Oil futures on the CME were $1.32 to $1.84 higher through the front six contracts, as traders appeared to add risk premium based on political tensions in the Middle East and concerns about hurricane season. Holiday demand added support.
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Between USDA’s estimate of planted area in Friday’s Acreage report and trendline yields, Stephen Koontz, agricultural economist at Colorado State University says corn production this year would be about 15 billion bushels. If usage remains steady, he explains the stocks to use ratio would increase to more than 16%.
“This level of stocks has not been seen since the 2005/06 crop year,” Koontz says, in the latest issue of In the Cattle Markets. “New crop corn futures have fallen to between $4.15-$4.20 and $4.00 will be pressured if yields are better than the trend, which seems likely, given the rainfall that much of the Corn Belt has seen. The cattle – and every other protein animal – industry is looking at prospects of the lowest feed grain prices in years.”