Cattle futures closed lower again Monday with follow-through selling supported by more bearish outside markets.
Toward the close, Live Cattle futures were an average of $1.84 lower. Feeder Cattle futures were an average of $4.60 lower.
Negotiated cash fed cattle trade was mostly inactive on light to moderate demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mostly $9 higher in the Southern Plains at mainly $255/cwt., $6-$9 higher in Nebraska at $252-$257 and $9 higher in the western Corn Belt at mostly $255. Dressed delivered prices were mostly $14 higher at mainly $400.
Last week’s five-area direct weighted average FOB live fed steer price was $8.84 higher at $255.02. The weighted average dressed delivered fed steer price was $13.08 higher at $399.08.
Choice boxed beef cutout value was $2.45 higher Monday afternoon at $391.56/cwt. Select was $3.55 higher at $380.60.
Grain and Soybean futures continued higher on Monday.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were 4¢ lower to 1¢ higher. Corn futures were mostly 5¢ higher. Soybean futures were 13¢ to 20¢ higher through near Nov, boosted by Soybean oil prices and hopes on upcoming trade talks with China.
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Major U.S. financial indices closed lower Monday, as Crude Oil prices gained along with U.S.-Iran tension.
The Dow Jones Industrial Average closed 557 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 46 points.
West Texas Intermediate Crude Oil futures (CME) were $2.96 to $3.97 higher through the front six contracts.
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Drought continues across the majority of United States and are more widespread year over year, according to the latest U.S. Drought Monitor.
For the week of April 28, 61.7% of the continental U.S. was experiencing moderate to exceptional drought, which was 16.9% more than the first week of this year and 24.7% more than the same time last year. Another 13.7% was abnormally dry.
Moreover, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University says the Drought Severity Coverage Index (DSCI) — calculated from the Drought Monitor categories — is 202, the largest value for the month since 2000.
“Not only has the DSCI never reached a value of 200 at this time of year, the DSCI for the U.S. has only exceeded a level of 200 a total of 26 times in 1,374 weeks since the Drought Monitor began,” Peel explains in his weekly market comments. “The DSCI has averaged 108, ranging from 11 to 215 over the last 26+ years. The current values over 200 are more than two standard deviations above average and have occurred less than 2% of the time in the history of the Drought Monitor.”
More specific to beef cattle producers, Peel says more than 79% of the beef cow herd in the 26 states accounting for 88% of the beef cow inventory at the beginning of the year, are currently impacted by drought.
Moving into May, Peel adds that drought conditions take on a new urgency with pasture and hay production in the next few weeks determining cattle production potential for much of the year. “It is clear that drought is a significant threat to beef cattle production and potential herd rebuilding in 2026,” he says.
As it is, beef cow herd culling — a key part to halting herd liquidation — dropped sharply starting in 2023 and reached a cyclically low level of 8.4% last year, according to Peel.
“Thus far in 2026, beef cow slaughter is down over 17% year over year, a level that would lead to an annual herd culling rate of roughly 7.0 if it persists for the balance of the year,” Peel says. “This would be a record-low culling rate and would certainly help stabilize the beef cow herd. However, current drought conditions may cause cow slaughter to increase and lead to additional herd liquidation.”
Listen to more of Peel’s insights here.