Cattle futures were under early pressure Monday from lower outside markets tied to uncertainty about the impact of the U.S.-Israel strikes against Iran. Ultimately, though, Cattle futures trended mainly higher.
Toward the close, Live Cattle futures were an average of $1.23 higher (65¢ to $1.57 higher), except for $1.42 lower in the back contract.
Feeder Cattle futures were an average of $2.48 higher, except for $3.45 lower in the back contract.
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 $5 lower in the Southern Plains at $244/cwt., $5-$8 lower in Nebraska at $239-$243 and mostly $2-$4 lower in the western Corn Belt at mainly $243.
Dressed delivered prices were mostly $5 lower in Nebraska at mainly $383 and $5-$6 lower in the western Corn Belt at $382-$383 in a light test.
The five-area direct weekly weighted average fed steer price was $4.20 lower at $242.71/cwt. The weekly weighted averaged dressed delivered fed steer price was $5.35 lower at $382.60.
Choice boxed beef cutout value was $1.50 higher Monday afternoon at $381.34/cwt. Select was $3.90 higher at $378.21.
Grain and Soybean futures trended lower Monday, pressured by uncertainty related to the U.S.-Israel attack on Iran, as well as likely profit taking.
Toward the close and through near Sep contracts, Kansas City HRW Wheat futures were 6¢ to 14¢ lower. Corn futures were 1¢ to 5¢ lower. Soybean futures were 1¢ to 9¢ lower.
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Major U.S. financial indices were down hard at Monday’s open as Crude Oil futures spiked higher in response the U.S.-Israel attacks against Iran. Later, investors appeared willing to take advantage of the pullback.
The Dow Jones Industrial Average closed 73 points lower. The S&P 500 closed 2 points higher. The NASDAQ was up 80 points.
Although off of session highs, through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $2.04 to $4.61 higher through the front six contracts.
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Continuing drought and the threat of drought will likely make producers cautious about aggressive herd expansion in major beef cow states where the majority of herd liquidation has occurred, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
Compared to the recent peak in 2019, Peel explains the national beef cow herd at the beginning of this year was 4.03 million head less (-12.7%) at 27.61 million head.
“A proportionally larger share of herd liquidation has occurred in the heart of beef cow production regions,” Peel says. “In 2019, 13 states in the middle of the country accounted for 64.6% of the total herd but by 2026, the share had dropped to 63.1%. The herd-inventory change in these 13 states in the past seven years totaled 3.0 million head, 74.3% of the total herd decrease.”
Beside drought concerns, Peel says changes in crop production and land use could pose expansion challenges in some areas.
“From 2019 to 2025, corn and soybean planted acreage in the U.S. increased by 8.6%, an increase of 14.2 million acres,” Peel explains. “In South Dakota, planted crop acreage increased by 3.38 million acres, up 24.5% from 2019 to 2026, with corn and soybean acreage up by 52.2%. Simultaneously, hay acreage in the state decreased by 710 thousand acres.”
Along with South Dakota, Peel says it appears increased crop production is likely to limit herd rebuilding in the Midwest and eastern regions of Great Plains states, including Kansas, Nebraska and North Dakota.