Cattle futures closed higher Monday, buoyed by firmer cash fed cattle prices as last week progressed and by sharply lower Corn futures.
Toward the close, Live cattle futures were an average of $1.70 higher (62¢ higher at the back to $2.20 higher). Feeder Cattle futures were an average of $3.46 higher (72¢ higher in the back contract to $4.57 higher toward the front).
Negotiated cash fed cattle trade was 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 mainly steady in the Texas Panhandle at $224/cwt., steady to $1 lower in Kansas at $224-$225, steady in Nebraska at $230-$232 and unevenly steady in the western Corn Belt at $230-$234. Dressed delivered prices were steady in Nebraska at $368 and steady to $2 lower in the western Corn Belt at $368 in a light test.
The five-area direct weighted average FOB fed steer price last week was just 8¢ lower at $229.43/cwt. The dressed delivered fed steer price was 22¢ lower at $369.30.
Choice boxed beef cutout value was $1.23 higher Monday afternoon at $390.98. Select was 91¢ lower at $377.53.
Estimated total cattle slaughter of 474,000 head was 47,000 head fewer than the same week a year ago. Estimated year-to-date total cattle slaughter of 15.1 million head was 1 million head fewer (-6.5%) than the same time last year. Estimated year-to-date beef production of 13.1 billion pounds was 456.4 million pounds less (-3.4%).
Grain and Soybean futures were lower Monday, pressured by favorable weather and trade uncertainty.
Toward the close and through Mar ‘26 contracts, Corn futures were mainly 11¢ to 16¢ lower. Kansas City Wheat futures were mostly 7¢ to 13¢ lower. Soybean futures were 19¢ to 28¢ lower.
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Major U.S. financial indices closed sharply lower Monday amid another round of tariff uncertainty.
The Dow Jones Industrial Average closed 422 points lower. The S&P 500 closed 49 points lower. The NASDAQ was down 188 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 67¢ to $1.08 higher through the front six contracts.
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Keep in mind, the phased reopening was scheduled to begin yesterday with the port at Douglas, AZ.
“Cattle moving through this port will go through a robust double-inspection. Before entering the port, cattle will be inspected for any wounds or other health conditions, explains Colin Woodall, CEO of the National Cattlemen’s Beef Association. “If any wounds are detected, the entire lot of cattle will be rejected by veterinary authorities. Cattle will also receive an anti-parasitic medication and then be quarantined for three days before moving through the port. Once on the other side, cattle will receive another round of veterinary inspection. Opening the Douglas port is the first phase of USDA’s plan and they will continue assessing biosecurity at every step of the process.”
Derrell Peel, Extension livestock marketing specialist at Oklahoma State University provides some numbers perspective, in his weekly marketing comments, explaining 224,834 Mexican cattle crossed the border from early February to May 11, when the border was last open to Mexican cattle imports. He points out the current list of ports scheduled to reopen accounted for roughly 71% total imports in 2023.
Given the remaining weeks of the year and the likelihood that ports will not jump to historic capacity immediately, Peel says total possible imports for the year are likely to be significantly reduced for the year.
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Exports of U.S. beef and pork trended lower in May, due primarily to steep declines in shipments to China, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 97,266 mt in May, down 12% and the lowest in nearly five years. Export value was $798.7 million, down 11.5% and the lowest in 18 months. But exports to leading market South Korea were outstanding, posting the largest monthly volume in more than two years and the highest value in nearly three years. May beef exports also trended higher year-over-year to Central and South America, the Dominican Republic, the United Arab Emirates and Africa.
May beef exports to China plunged to just under 1,400 mt, down 91% from a year ago. Export value fell 90% to less than $15 million.
“The situation with China obviously had a severe impact on May exports, underscoring the importance of diversification and further development of alternative markets,” said USMEF President and CEO Dan Halstrom. “The need for progress in the U.S.-China trade negotiations is extremely urgent because tariffs could soar again on Aug. 12. This deadline is already impacting exporters’ decisions about whether to continue producing for the Chinese market. On the bright side, amid all this uncertainty, demand for U.S. red meat remains robust in many key regions.”
January-May beef exports were down 5% from last year’s pace at 508,293 mt, while value declined 3% to $4.15 billion.
May pork exports totaled 224,162 metric tons (mt), down 11% from a year ago, while value fell 10% to $646.5 million.