Strong cash fed cattle prices and higher wholesale beef values helped Cattle futures extend gains Monday.
Live Cattle futures closed an average of $1.38 higher (70¢ higher at the back to $1.80 higher toward the front).
Feeder Cattle futures closed an average of $2.40 higher ($1.92 to $3.12 higher).
Choice boxed beef cutout value was $1.43 higher Monday afternoon at $313.33/cwt. Select was 65¢ higher at $303.05/cwt.
Negotiated cash fed cattle trade ranged from a standstill to mostly inactive on light demand through Monday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1 higher in the Southern Plains at $186/cwt., $2.00 higher in Nebraska at $187-$188 and $2-$3 higher in the western Corn belt at $187-$189. Dressed delivered prices were steady to $3 higher in Nebraska at $295-$300 and $6 higher in the western Corn Belt at $298.
The weighted average five-area direct FOB live steer price last week was $2.35 higher at $187.47/cwt. The weighted average dressed delivered price was $4.67 higher at $298.06.
Corn futures closed unchanged to fractionally mixed.
KC HRW Wheat futures closed 7¢ to 8¢ higher.
Soybean futures closed 7¢ to 10¢ lower.
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Major U.S. financial indices closed higher Monday, led. by tech stocks.
The Dow Jones Industrial Average closed 75 points higher. The S&P 500 closed 32 points higher. The NASDAQ was down 130 points higher.
West Texas Intermediate Crude Oil futures (CME) closed $1.16 to $1.68 higher through the front six contracts.
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Imports of Mexican cattle to the United States have averaged more than 1 million head annually for the last four decades — mostly feeder cattle — says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University. He explains feeder steers comprised 80.7% of imports over the last eight years; 19% spayed feeder heifers.
“In 2023, imports of cattle from Mexico increased 43% year over year,” Peel says. “However, the large percentage increase was in comparison to the very low level in 2022. Imports of Mexican cattle in 2022 were the lowest since 2008.”
Spun differently, Peel says imports of Mexican cattle have averaged 3.2% of the U.S. calf crop for the past 25 years, ranging from 1.9% to 4.3%.
“Many of the Mexican cattle imports enter stocker programs in the U.S. prior to feedlot finishing, although some are placed in feedlots directly upon arrival in the U.S.,” Peel says. “ … Flows of Mexican cattle into the U.S. market vary from year to year because of numerous factors in both countries, including relative cattle numbers and cattle prices, beef market conditions, drought and currency exchange rates.”
On the other end of the trade, Peel notes Mexico is one of the major beef export destinations for U.S. beef. He adds that the U.S. has exported an average of 43,000 head of cattle to Mexico — mainly breeding stock — over the past 25 years. The U.S. exported more than 103,000 head of cattle to Mexico last year, the most since 2002.