Cattle futures closed higher Monday, supported by last week’s bounce in cash fed cattle prices and stronger wholesale beef values.
Toward the close, Live Cattle futures closed an average of $1.77 higher. Feeder Cattle futures were an average of $2.74 higher.
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 $5-$6 higher in the Southern Plains at $202-$203/cwt. and $4-$6 higher in the North at $206/cwt. Dressed delivered prices were $8-$10 higher in Nebraska at $325 and $5-$10 higher in the western Corn Belt at $325.
The weighted average five-area direct FOB live fed steer price last week was $5.02 higher at $205.30. The weighted average dressed delivered steer price was $8.54 higher at $324.97.
Choice boxed beef cutout value $2.89 higher Monday afternoon at $321.16/cwt. Select was $1.58 higher at $307.90.
Grain and Soybean futures were mixed Monday.
Toward the close and through Sep ’25 contracts, Kansas City Wheat futures 18¢ to 19¢ higher with traders apparently adding premium. Corn futures were 2¢ to 3¢ higher. Soybean futures were fractionally higher to 1¢ lower.
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Major U.S. financial indices continued to advance Monday in the wake of the recent selloff.
The Dow Jones Industrial Average closed 353 points higher. The S&P 500 closed 36 points higher. The NASDAQ was up 54 points.
West Texas Intermediate Crude Oil futures on the CME were 35¢ to 52¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) increased projected feeder steer prices for this year for all quarters, compared to the previous month, in the March Livestock Dairy and Poultry Outlook. Prices were forecast at $273 in the first and second quarters, $274 in the third quarter and $279 in the fourth quarter for an annual average of $274.75. Prices are basis Med. and Lg. #1 steers weighing 750-800 lbs., selling at Oklahoma City.
“The combination of tight supplies of feeder cattle, the recently constrained pace of cattle imports from Mexico due to protocols to mitigate the spread of New World Screwworm, and uncertainty surrounding the terms of trade for cattle imported from Canada and Mexico are creating some volatility, pushing prices higher for U.S. feeders and stocker operations to secure their cattle needs,” say ERS analysts.
As mentioned in Cattle Current last week, USDA’s Economic Research Service lowered expectations for the five-area direct weighted average fed steer price in the first half of this year, compared to the previous month’s forecast, but left them unchanged for the second half, in the monthly World Agricultural Supply and Demand Estimates.
Specifically, prices were projected $3 lower in the first quarter at $202/cwt. and $2 lower in the second quarter at $198, based on recent prices. Prices were forecast at $198 in the third quarter and at $200 in the fourth quarter for an annual average price of $200, which was $1 lower than the previous month’s outlook.
Forecast beef production increased by 120 million pounds (0.5%) to 26.7 billion pounds with heavier dressed weights more than offsetting lower slaughter. This year’s projected beef production would be 303 million pounds less (-1.1%) than last year.