Cattle futures sought stability Monday after the previous session’s free fall.
Toward the close, Live Cattle futures were an average of 53¢ lower, except for $1.97 higher at the back of the board. Feeder Cattle futures were an average of 98¢ higher.
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.
FOB live prices last week were $225/cwt. in the South Central region with no previous-week comparison. Prices were $4 to $4.50 lower in Nebraska at mostly $224 and $3 lower in the western Corn Belt at mostly $224. Dressed delivered prices were mainly $6 lower in Nebraska at mostly $352 and steady to $17 lower in the western Corn Belt at $348-$365.
Last week’s five-area direct weighted average FOB live fed steer price was $3.35 lower at $223.73/cwt. The weekly weighted average dressed delivered fed steer price was $8.60 lower at $352.19.
Choice boxed beef cutout value was 38¢ higher Monday afternoon at $365.04/cwt. Select was $2.96 higher at $354.94.
Grain futures firmed Monday, while Soybean futures slid lower with wonderment about higher yields and positive South American weather.
Through late afternoon, and through the front four contracts, Corn futures were unchanged to 1¢ higher.
Kansas City HRW Wheat futures were fractionally higher to 1¢ higher.
Soybean futures were 17¢ to 18¢ lower.
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Major U.S. financial indices closed mixed on Monday, boosted by a sharply decline in Crude Oil futures, tied to renewed hopes of U.S.-Iran peace talks, but weighed down by tech stocks once again.
The Dow Jones Industrial Average closed 213 points higher. The S&P 500 closed 38 points lower. The NASDAQ was down 272 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were $5.38 to $7.38 lower through the front six contracts.
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The January and July 2026 Cattle reports showed a slight increase in beef replacement heifers, but not enough to suggest herd growth, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
“In fact, four years of decreased cow culling means that more old cows in the herd will have to be replaced relatively soon,” Peel says. “It appears that a minimum of 200,000 head of beef replacement heifers is likely to be needed in the next year just to maintain the current herd. The January data showed an increase of 41,700 head and the July report showed a 100,000 head increase in beef replacement heifers, neither is enough to indicate herd rebuilding.”
Peel adds that fed heifer slaughter was down 11% year over year through the first three quarters, and down sharply the last couple of months, which could be stronger indication of heifer retention.
“Both beef and dairy heifers are included in heifer slaughter data,” Peel explains. “The decrease in heifer slaughter could reflect heifer retention in either or both sectors. The July inventory data showed an increase in both beef and dairy replacement heifers. There are indications that both sectors are trying to retain replacement heifers, and both could be contributing to decreased heifer slaughter. Additionally, heifer slaughter is down, in part, simply because there are less cattle being slaughtered and less cattle to slaughter…”
With that in mind, Peel points out beef cow culling dropped from a record high of 13.19% in 2022 to a projected record low of 7.35% this year.
“Decreased cow culling is mostly about slowing herd liquidation and stabilizing cow inventory at the cyclical low,” Peel says. “From that point, increased heifer retention provides the means to expand beef cow inventories. The first part of that process is in place.
“… All in all, there are indications of a modest increase in heifer retention in 2026, perhaps accelerating late in the year. Nevertheless, prospects for herd growth going into 2027 remain limited with growth beyond 2027 yet to be confirmed.”