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 $2 higher in the Southern Plains at $185/cwt., $1.50-$2.00 higher in Nebraska at $185-$186 and $2 higher in the western Corn Belt at $185-$186. Dressed delivered prices were $2-$8 higher in Nebraska at $292-$300 and $2 higher in the western Corn Belt at $292.
Choice boxed beef cutout value was $1.84 higher Monday afternoon at $308.88/cwt. Select was $1.45 higher at $298.88/cwt.
Cattle futures drifted mainly lower Monday.
Live Cattle futures closed an average of 27¢ lower, except for an average of 16¢ higher in the back two contracts.
Feeder Cattle futures closed an average of 85¢ lower (12¢ to $1.37 lower), except for an average of 36¢ higher in the last two contracts.
Corn futures closed fractionally higher to 2¢ higher.
KC HRW Wheat futures closed 9¢ to 13¢ higher.
Soybean futures closed mostly fractionally lower to 5¢ lower.
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Major U.S. financial indices settled narrowly mixed Monday as investors apparently waited for direction from Tuesday’s Consumer Price Index.
The Dow Jones Industrial Average closed 46 points higher. The S&P 500 closed 5 points lower. The NASDAQ was down 65 points.
West Texas Intermediate Crude Oil futures (CME) closed 8¢ lower to 26¢ higher through the front six contracts.
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Nationwide last week, feeder steers and heifers sold $2-$4 higher, according to the Agricultural Marketing Service. Compared to a year earlier, the regional weighted average feeder steer price (600-700 lbs.) was 65.67/cwt. higher in the Southeast to $79.09 higher in the North Central region, according to USDA’s National Weekly Feeder and Stocker Cattle Summary.
Total trade at auction, video-internet and via direct trade last week was 306,200 head compared to about 280,000 head the previous week and about 260,000 the same week last year. Year-to-date auction receipts are higher year over year.
“Feeder cattle supplies are the tightest they have been in a decade and are expected to tighten further this year,” says Josh Maples, Extension livestock economist at Mississippi State University, in the latest Cattle Market Notes Weekly. “Higher levels of cow-culling and lower retention of heifers as beef cow replacements in recent years have likely set the stage for a smaller calf crop in 2024.” He explains the estimated number of calves produced in 2023 was 33.6 million head, which was similar to the 2014 level and down more than 3 million head since 2018.