Cattle futures were higher Monday, supported by last week’s strong gains in cash fed cattle prices.
Toward the close, Live cattle futures were an average of $1.40 higher. Feeder Cattle futures were an average of $3.04 higher.
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 mostly $1-$3 higher in the Texas Panhandle at 221 to mostly $223/cwt., $1-$3 higher in Kansas at mainly $222, $5-$6 higher in Nebraska at $235-$237 and $1 to $6 higher in the western Corn Belt at $230-$237. Dressed delivered prices were $3-$5 higher in Nebraska at $365-$370 and $6-$11 higher in the western Corn Belt at $371.
The weighted average five-area direct FOB live fed steer price last week was $2.97 higher at $229.94. The weighted average dressed delivered fed steer price was $6.32 higher at $368.06.
Choice boxed beef cutout value was 34¢ lower Monday afternoon at $366.00/cwt. Select was $1.46 higher at $358.11.
Turning to the grain complex, Corn and Soybean futures were lower again Monday, pressured by increasing trade tension between China and the U.S., favorable weather and crop progress.
Toward the close and through Mar ‘26 contracts, Corn futures were 2¢ to 4¢ lower. Soybean futures were 7¢ to 9¢ lower. Kansas City Wheat futures were 4¢ to 5¢ higher.
******************************
Major U.S. financial indices recovered from early pressure tied to tariff rhetoric to settle higher Monday.
The Dow Jones Industrial Average closed 35 points higher. The S&P 500 closed 24 points higher. The NASDAQ was up 128 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were $2.01 to $2.34 higher, boosted by OPEC’s decision to maintain, rather than expand production.
******************************
Choice boxed beef cutout value last week was 16.5% higher year over year, increasing 7.7% over seven weeks, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.
“Cutout values typically increase to a seasonal peak in May but the increase this year has been more pronounced than usual, owing to generally strong beef demand and recently declining beef production,” Peel explains in his weekly market comments. “The increase in boxed beef cutout values from March to May has been roughly twice the normal seasonal increase over this period.”
Peel points out fed steer slaughter has been 5.5% less year over year during the last seven weeks, while fed heifer slaughter has been 5.8% lower with total fed slaughter down 5.6%.
“This contrasts with 2024, when steer slaughter was up 0.4% and heifer slaughter was down a scant 0.3% year over year, leading to total fed slaughter up 0.3% for the year,” Peel says.
Non-fed slaughter is 9.7% less year over year for the first 19 weeks of this year, according to Peel. He explains beef cow slaughter during that time is 17% less, dairy cow slaughter is 8.4% less and total cow slaughter is down 12.8%.