Cattle futures stepped lower Monday with apparent technical selling.
Before settlement, Live Cattle futures were an average of $1.20 lower. Feeder Cattle futures were an average of $2.75 lower.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1.50-$2 higher in the Texas Panhandle at $190/cwt., $2-$3 higher in Kansas at $190, $2 higher in Nebraska at $198 and steady to $2 higher in the western Corn Belt at $196-$198. Dressed delivered prices were $2 higher at $312/cwt.
Last week’s weighted average five area direct FOB live steer price was $1.54 higher at $195.21/cwt. The weighted average dressed delivered steer price was $1.30 higher at $311.34.
Choice boxed beef cutout value was $1.04 higher Monday afternoon at $314.81/cwt. Select was $4.06 higher at $301.52/cwt.
Grain and Soybean futures closed mixed Monday.
Heading into the close, through Jly ’25 contracts, Corn futures were 2¢ to 3¢ higher. Kansas City Wheat futures were 5¢ to 7¢ higher. Soybean futures were mostly 5¢ to 10¢ lower.
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Major U.S. financial indices closed little changed Monday.
The Dow Jones Industrial Average closed 49 points lower. The S&P 500 closed 4 points higher. The NASDAQ was up 12 points.
West Texas Intermediate Crude Oil futures on the CME were 91¢ to $1.28 lower through the front six contracts.
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Although Choice boxed beef prices have declined seasonally by 5.4% since July 4, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University notes they are 3.4% higher year over year.
“Beef tenderloin is the highest value beef cut and the price has been quite flat and lower year over year for much of 2024,” Peel explains in his weekly market comments. “This weakness is a bit concerning but the fall may provide an important indicator of tenderloin demand going into cooler weather and the seasonal pick up in restaurant traffic. In contrast, the other steak cuts have values that are generally at or above year-ago levels, including ribeye, strip loin, and top sirloin.”
While the majority of Chuck products are currently priced on par with last year or less, Peel says overall Chuck primal values are 6.6% higher year over year in July and Round primal values are nearly 21% higher, driven by less lean trim derived from non-fed beef production. He notes non-fed beef production is down about 13% so far this year.
“The current wholesale price of 90% lean trimmings is at a record level,” Peel says. “The market is attempting to make up for the shortage of lean beef in the non-fed market by pulling more lean beef from fed beef supplies. This mostly comes from several round cuts but also likely from the chuck mock tender (one of the few lean cuts in the Chuck). Markets always attempt to balance supply and demand and the increased arbitrage between fed and non-fed beef markets today is an indication of a very unusual market situation.”