Cattle futures gained ground Monday, buoyed by the discount to cash, as well as ongoing strong cash demand for feeder cattle.
Toward the close, Live cattle futures were an average of $1.92 higher.
Feeder Cattle futures were an average of $3.76 higher.
Negotiated cash fed cattle trade was mostly inactive on moderate demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $230/cwt. in the Texas Panhandle, $230-$231 in Kansas and $240 in the North where dressed delivered prices were $380.
The weighted average five-area direct FOB live fed steer price last week was 57¢ higher at 237.78/cwt. The weighted average dressed delivered fed steer price was 15¢ higher at $379.36.
Choice boxed beef cutout value was $1.48 lower Monday afternoon at $372.07. Select was $1.44 lower at $350.05.
Grain and Soybean futures were lower Monday, pressured by likely profit taking.
Toward the close and through away Jly contracts, Corn futures were 6¢ lower. Kansas City Wheat futures were 4¢ lower. Soybean futures were 6¢ to 12¢ lower.
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Major U.S. financial indices closed little changed Monday with the primary support coming from Big Tech.
The Dow Jones Industrial Average closed 19 points lower. The S&P 500 closed 8 points higher. The NASDAQ was up 78 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 3¢ to 34¢ lower through the front six contracts.
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Among other market anomalies at historic price heights, Andrew P. Griffith, agricultural economist at the University of Tennessee points out prices for lightweight calves have continued to defy seasonal tendencies.
“Lightweight calf prices typically peak in March and April before declining through the summer and fall months,” Griffith says, in his weekly market comments. “This year, the price of lightweight calves has continued to increase with declines in random weeks along the way. One would assume prices will soften during the fall months when the majority of spring born calves make their way to market, but the seasonal decline may not be as magnified as the historical averages would predict.”
As producers navigate historic prices on both sides of the transaction, Griffith emphasizes the need for risk management strategies.