Cattle futures closed mixed but firmer Monday.
Toward the close, Live cattle futures were mixed, from an average of 40¢ lower to an average of 28¢ higher.
Feeder Cattle futures were an average of 71¢ higher.
Negotiated cash fed cattle trade was inactive in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, based on the latest established trade, FOB live prices were $7 lower in the Southern Plains at $228/cwt., $5 lower in Nebraska at $235-$237 and $3-$5 lower in the western Corn Belt at $235-$238. Dressed delivered prices were $4 lower at $376.
The weekly five-area direct weighted average FOB live fed steer price was $4.03 lower at $234.88. The weekly weighted average dressed delivered fed steer price was $3.48 lower at $376.57.
Choice boxed beef cutout value was 28¢ lower Monday afternoon at $390.22. Select was $6.15 higher at $383.10.
Grain and Soybean futures continued lower Monday with weather and the sharp decrease in Crude Oil futures (see below).
Toward the close and through Mar ‘26 contracts, Corn futures were 7¢ to 10¢ lower. Kansas City Wheat futures were 12¢ to 13¢ lower. Soybean futures were 10¢ to 14¢ lower.
******************************
Major U.S. financial indices gained Monday with Crude Oil futures shoved sharply lower on what traders viewed as tame Iranian retaliation to U.S. air strikes over the weekend.
The Dow Jones Industrial Average closed 374 points higher. The S&P 500 closed 57 points higher. The NASDAQ was up 183 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were $3.90 to $6.58 lower through the front six contracts.
******************************
Feedlot inventories will continue eroding over time, and likely at a faster pace, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
“The feedlot is like a water tank with placements as the inflow and marketings as the outflow. Slower inflow is more than offset by slower outflow and helps keep the inventory (stock level) of the feedlots temporarily higher than the flows would indicate,” Peel explains.
Using his water tank analogy, Peel explains the inflow of feedlot placements during the past six months are 4.4% less compared to the same period last year, while the outflow of markets was at a slower pace of 3.1%.
However, feedlot inventories remain relatively higher than the flows might suggest.
Cattle on feed June 1, in yards with more than 1,000 head capacity were 1% less year over year, according to the latest Cattle on Feed report. Peel says the on-feed inventory has averaged 1.2% less year over year for the past seven months.
“… The fact is that feedlot production and beef production are falling and will continue to fall, probably faster, in the coming months,” Peel says.