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Cattle futures closed lower again Monday with likely continued profit taking and positioning ahead of month-end and quarter-end.
Toward the close, Live Cattle futures were an average of $1.49 lower. Feeder Cattle futures were an average of $2.16 lower.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $258/cwt. in the Southern Plains, which was steady to $2 lower in the Texas Panhandle and $2 lower in Kansas. FOB live prices were steady in the western Corn Belt at mostly $260 and steady to $2 lower in Nebraska at $258-$260. Dressed delivered prices were $408, which was steady in Nebraska and $3 higher in the western Corn Belt.
The five-area direct weighted average FOB live fed steer price last week was 29¢ lower at $259.34/cwt. The weighted average dressed delivered fed steer price was 75¢ higher at $407.75.
Grain and Soybean futures were lower again Monday with follow-through pressure from positive weather, month- and quarter-end, as well as positioning ahead of Tuesday’s Acreage and Grain Stocks reports.
Toward the close, and through near Mar contracts, Corn futures were 12¢ to 13¢ lower. Soybean futures were 16¢ to 19¢ lower. Kansas City HRW Wheat futures were 7¢ to 13¢ lower.
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Major U.S. financial indices closed higher Monday, supported of new optimism regarding the ceasefire between the U.S. and Iran.
The Dow Jones Industrial Average closed 306 points higher. The S&P 500 closed 86 points higher. The NASDAQ was up 522 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.01 to $1.32 higher through the front six contracts.
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Although feedlot inventories in June were 2.1% less year over year, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University points out it reflects marketings decreasing more than placements.
“In the past 12 months, feedlot placements have decreased 6.1% while feedlot marketings have decreased 7.8%, Peel explains in his weekly market comments. “Decreased feedlot flows (placements and marketings) follow from ever tighter feeder cattle supplies. The 2025 calf crop was the eighth consecutive smaller calf crop and was the smallest in 84 years. The resulting slowdown in feedlot production, while maintaining feedlot inventories, is accomplished by an increase in average feedlot days on feed and heavier final weights for fed cattle. The Kansas Focus on Feedlots data shows average of 188 days on feed for the last year, with recent months up to 198 days. Final fed steer weights in Kansas feedlots have increased 105 pounds in the past 18 months, currently averaging 1,523 pounds.”
Reduced feedlot flow leads to less fed cattle slaughter. Through the first half of this year, Peel explains fed cattle (steer and heifer) slaughter was 8.7% less year over year.
“Decreased fed cattle slaughter is partially offset by increased carcass weights,” Peel says. “Steer carcass weights are currently 968 pounds. Steer carcass weights have averaged 35 pounds heavier thus far in 2026. Heifer carcass weights are currently 884 pounds and are averaging 26.6 pounds more than one year ago.” He adds cow slaughter is 5.3% less so far this year, leading to an 8.1% decline in total cattle slaughter.
Total beef production is down 5.5% year over year through the first half of 2026, according to Peel with average fed beef production the lowest since 2017 and non-fed beef production the lowest since 2006.
“Average monthly commercial beef production is at the lowest level since late 2016,” Peel says. “Total beef production is projected to be down 4.5-5.0% in 2026, compared to last year, and is expected to decrease again in 2027 to the lowest beef production since 2015.”
Listen to more of Peel’s insights here.