Cattle futures continued to climb Monday on higher cash fed cattle prices, stronger wholesale beef values and Friday’s friendly Cattle on Feed report.
Feeder Cattle futures closed an average of $1.23 higher (40¢ to $1.57 higher).
Live Cattle futures closed an average of $1.18 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Live prices last week were $148/cwt. in the Southern Plains, $150-$152 in Nebraska and $150 in the western Corn Belt. Dressed prices were $236 in Nebraska and $232-$236 in the western Corn Belt.
Choice Boxed beef cutout value was $4.21 higher Monday afternoon at $257.92/cwt. Select was $1.25 higher at $225.61/cwt.
Corn futures closed mostly 1¢ to 2¢ lower.
Soybean futures closed mostly 14¢ to 23¢ lower.
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Major U.S. financial indices extended gain Monday.
The Dow Jones Industrial Average closed 417 points higher. The S&P 500 closed 44 points higher. The NASDAQ was up 92 points.
West Texas Intermediate Crude Oil futures (CME) closed 5¢ to 47¢ lower through the front six contracts.
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Through the first week of October, female beef cattle slaughter was approaching 750,000 head more than last year, according to the Livestock Marketing Information Center (LMIC). Beef cow slaughter was 336,000 head more and heifer slaughter was up 364,000 head.
“Given the pace of current slaughter, a reasonable estimate would conclude U.S. female slaughter will be over 800,000 head by the end of the year,” LMIC analysts say, in the latest Livestock Monitor. “Using a simple regression analysis of data back to 1987, that would imply a Jan. 1 beef cow herd number down 4.8%, greater than the largest decline seen in the 2011-2015 time period. The difference has been the larger number of heifers moving through slaughter channels. It would suggest an unprecedented proportion of female slaughter in the last several decades relative to herd inventory.”