Cattle futures were narrowly mixed Monday, as traders appeared to take stock after last week’s strong gains.
Heading into the close and before settlement, Live Cattle futures were an average of 17¢ higher, from 30¢ lower in near Aug.
Feeder Cattle were an average of 57¢ lower, except for 10¢ higher in the back contract. Pressure included stronger Corn futures prices.
Negotiated cash fed trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $2-$3 higher in the Southern Plains at $186/cwt., $3-$4 higher in Nebraska at $190 and $3-$5 higher in the western Corn Belt at $190 with a few up to $191. Dressed delivered prices were $2-$3 higher in Nebraska at $298-$300 and mostly $5 higher in the western Corn Belt at $300 with some up to $306.
The weighted weekly average five-area direct FOB live steer price was $2.60 higher at $188.54. The weighted average dressed delivered steer price was $4.11 higher at $299.39.
Choice boxed beef cutout value was 75¢ lower Monday afternoon at $312.70/cwt. Select was $1.95 higher at $299.35/cwt.
Kansas City Wheat futures rallied Monday, up 24¢ to 34¢ through Dec ’25 heading into the close on concerns about crop damage in the Ukraine and Russia, and leading Corn. Corn futures were 6¢ to 8¢ higher through Jly ‘25. Soybean futures were 9¢ to 18¢ higher through Aug ’25.
******************************
Major U.S. financial indices closed Mixed Monday with tech stocks leading the positive side.
The Dow Jones Industrial Average closed 196 points lower. The S&P 500 closed 4 points higher. The NASDAQ was up 108 points.
Heading into the close West Texas Intermediate Crude Oil futures on the CME were 18¢ to 42¢ lower through the front six contracts.
******************************
“Conditions at the beginning of the 2024 forage growing season suggest that producers may be able to plan grazing and hay production with less restriction compared to recent years,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “However, in many cases, pastures and ranges still need time to recover from extended drought conditions.” He points out there is currently less drought in the U.S. than at any time in the past four years.
Nationally, 49% of the nation’s pasture and range was rated as Good (40%) or Excellent (9%) the week ending May 19, according to the latest weekly Crop Progress report. That was 12% more than a year earlier. On the other end of the scale, 20% of the nation’s pasture and range was rated as Poor (13%) or Very Poor (7%), which was 9% less than a year earlier. The only key cattle states with 35% or more rated as Poor or Very Poor were New Mexico (59%) and Texas (38%).
“There is reason to be cautiously optimistic for better cattle production conditions in 2024,” Peel says. “However, the forecasted redevelopment of La Niña conditions this summer is worrisome. The seasonal forecast from the Climate Prediction Center is for above average temperatures and below average precipitation for the next three months in much of major beef cattle country. Proceed with caution.”
As for row crops, corn planting made up some ground last week but continued to lag with 70% in the ground which was 6% less than the same time last year and 1% less than the five-year average. 40% was emerged versus 46% a year earlier and 39% for average.
Similarly, soybean planting was 9% less than a year earlier at 52% but was 3% ahead of the average. 26% of soybeans were emerged, compared to 31% a year earlier and 21% for average.
As for winter wheat, 69% was headed, compared to 58% a year earlier and 57% for average. 49% was rated as Good (42%) or Excellent (7%), compared to 31% a year earlier. 18% was rated as Poor (13%) or Very Poor (5%) compared to 40% a year earlier.