Cattle futures rebounded some Monday, especially Feeder Cattle, supported by lower new-crop Corn futures and overall positive fundamentals.
Feeder Cattle futures closed an average of $1.55 higher (90¢ higher in spot May to $2.02 higher at the back).
Live Cattle futures closed an average of 67¢ higher.
There was no Monday negotiated cash fed trade summary from USDA available at press time.
The weighted average five-area direct fed steer price last week was $3.22 lower on a live basis at $173.93/cwt. The average steer price in the beef was $3.11 lower at $280.94.
Choice boxed beef cutout value was 63¢ lower Monday afternoon at $308.56/cwt. Select was $3.04 lower at $285.12/cwt.
Corn futures closed 4¢ to 6¢ lower after old-crop contracts, perhaps pressured in part by rapid planting progress.
KC HRW Wheat closed 9¢ to 11¢ higher through Dec ‘23 and then 2¢ to 6¢ higher.
Soybean futures closed mostly 4¢ to 8¢ lower through Mar ‘25.
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Major U.S. financial indices closed little changed Monday as investors await key inflation data later this week.
The Dow Jones Industrial Average closed 55 points lower. The S&P 500 closed 1 point higher. The NASDAQ was up 29 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.72 to $1.82 higher through the front six contracts.
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Calves and feeder cattle sold from $3/cwt. lower to $3 higher in the North Central and South Central regions last week, according to the Agricultural Marketing Service. They sold $1-$4 higher in the Southeast. Auction volume continued stronger year over year.
Through the first four months of this year, the number of stocker and feeder cattle sold was 4% higher year over year, according to Josh Maples, Extension livestock economist at Mississippi State University, in the latest Cattle Market Notes Weekly. That is based on the weekly AMS National Weekly Feeder and Stocker Cattle Summary.
“On the surface, the stronger receipts totals are at odds with the 2% smaller calf crop in 2022 than in 2021. However, the data are most likely indicating market timing differences instead of changes in total cattle inventory,” Maples explains. “Cattle prices have been significantly stronger this year as compared to a year ago and drought continues to be a key issue in Texas, Oklahoma, Kansas, Nebraska and other areas which is limiting grazing opportunities. These factors have likely led to more cattle moving into feedlots or grow yards earlier than normal. Compared to the 5-year average from 2017-2021, receipts are 1% lower so far in 2023.”