Cattle futures softened Monday, likely nudging chart resistance and perhaps with some early positioning ahead of Friday’s monthly Cattle on Feed report.
Toward the close, Live Cattle futures were an average of 50¢ lower. Feeder Cattle futures were an average of $1.10 lower.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $1 higher in the Southern Plains at $188/cwt. and steady in the North at $187-$188/cwt. with dressed delivered prices also steady at $296.
The weighted average five-area direct FOB live fed steer price last week was $187.61/cwt., which was 40¢ more than the previous week. The weighted average dressed delivered steer price was 29¢ higher at $296.21.
Choice boxed beef cutout value was $2.21 higher Monday afternoon at $322.86/cwt. Select was $2.01 higher at $296.21.
Corn and Soybean futures were higher Monday, helped by recent export sales.
Toward the close and through Sep ’25 contracts, Corn futures were mostly 3¢ to 4¢ higher. Soybean futures were 4¢ to 10¢ higher. Kansas City Wheat futures were mostly 1¢ higher.
******************************
Major U.S. financial closed mixed Monday, with primary pressure from a bounce in the 10-year Treasury bond yield.
The Dow Jones Industrial Average closed 344 points lower. The S&P 500 closed 10 points lower. The NASDAQ was up 50 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 94¢ to $1.14 higher through the front six contracts.
******************************
Choice boxed beef prices continue on a tear, hitting $322.86/cwt. Monday afternoon, which was $26.49 than the recent low Sept. 26, and the highest since July.
“The weekly Choice boxed beef price is also at the highest level since July and has averaged 2.2% higher year over year and a record high for the year-to-date,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He adds prices have moved higher for a number of cuts across the carcass.
“The increase in boxed beef prices is perhaps even more surprising in the face of increased fed beef production,” Peel says. “Higher prices and increased quantities suggest that beef demand continues to be very robust.”
For perspective, Peel explains total fed slaughter is down 0.7% percent compared to last year, while steer carcasses have averaged 25.5 lbs. heavier and heifer carcasses have averaged 22.6 pounds for the year to date.
“The result of stronger than expected fed slaughter and heavier carcass weights has been an increase in fed beef production of 1.9% year over year thus far in 2024,” Peel says. “In fact, for the last 16 weeks, fed beef production has been 3.7% larger year over year.”