Cattle futures extended gains Monday with follow-through support from last week’s stronger cash fed cattle prices.
Toward the close, Live Cattle futures were an average of $1.43 higher. Feeder Cattle futures were an average of $2.05 higher.
Negotiated cash fed cattle trade was mostly inactive on moderate demand in all major cattle feeding regions through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $6 higher in the Texas Panhandle at $218/cwt., $5-$8 higher in Kansas at $218, $4-$5 higher in Nebraska at $222-$223 and $5 higher in the western Corn Belt at $222-$223.
Dressed delivered prices were $7-$10 higher in Nebraska at $350 with a few up to $352, and $8-$10 higher in the western Corn Belt at $350.
Last week’s weighted average five-area direct FOB live fed steer price was $4.65 higher at $220.97/cwt. The weighted average dressed delivered fed steer price was $7.95 higher at $349.37.
Choice boxed beef cutout value was 67¢ higher Monday afternoon at $343.57/cwt. Select was $2.72 higher at $328.07.
Grain and Soybean futures were lower Monday with pressure from planting progress and favorable domestic weather.
Toward the close and through Mar ‘26 contracts, Corn futures were mostly 13¢ to 14¢ lower in the front two contracts and then 7¢ lower. Kansas City Wheat futures were mostly 8¢ to 9¢ lower. Soybean futures were 7¢ to 12¢ lower.
******************************
Major U.S. financial indices closed lower Monday, but off of session lows as traders continue uncertain of the U.S. tariff fallout.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 95¢ to $1.27 lower through the front six contracts.
******************************
Recent rains in the Southern Plains brighten herd expansion prospects for the region, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
Peel explains heifer retention could come with increased unplanned (impulse) breeding of yearling heifers that were categorized as “other” heifers in the Jan. 1 Cattle report rather than as “replacement” heifers.
“Historical data shows that an average of roughly 13% of ‘other’ heifers is typically bred each year as part of the total bred beef heifer supply the following January,” Peel says. “During the last herd expansion from 2014-2019, this percentage increased to over 18%, meaning that an additional 300,000-400,000 head of heifers were diverted from the feeder supply to breeding for the cow herd. A slower pace is expected in 2025, but impulse heifers breeding is likely to increase this year.”
Of course, beef producers can also expand the herd via increased retention of heifer calves. Peel explains these would be generally available to breed in 2026 and enter the cow herd in 2027. He notes fall-born heifers weaned in the next couple of months could be bred in late 2025 and calve in the fall of 2026.
“Heifer retention may be starting but the pace appears to be relatively slow, certainly much slower than the last herd expansion a decade ago,” Peel says. “If heifer retention is accelerating, the most immediate impact will be reduced feeder cattle supplies available for placement in feedlots.”
Listen to more of Peel’s market insights here.