Cattle futures continued lower on Monday, with last week’s wobbly cash fed cattle prices and lower wholesale beef values.
Toward the close, Live Cattle futures were an average of $1.34 lower. Feeder Cattle futures were an average of $1.96 lower.
Negotiated cash fed cattle trade was inactive on light demand in the North through Monday afternoon, according to the Agricultural Marketing Service.
FOB live prices last week were mainly steady to $2 lower in Nebraska at $220-222/cwt. and mostly unevenly steady to $2 lower in the western Corn Belt at mainly $219-$222. Dressed delivered prices were steady to $5 lower in Nebraska at mostly $345 and steady in the western Corn Belt at $345-$350.
The Texas Cattle Feeders Association reported its members trading fed cattle steady at $226.
The weekly weighted average five-area direct FOB live fed steer price was 87¢ lower at $219.80. The weekly weighted average dressed delivered fed steer price was $1.67 lower at $346.26.
Choice boxed beef cutout value was $4.07 higher Monday afternoon at $378.26/cwt. Select was $4.08 higher at $358.57.
Grain and Soybean futures were mixed on Monday.
Through late afternoon, and through the front four contracts, Soybean futures were mostly 2¢ to 3¢ higher. Kansas City HRW Wheat futures were 6¢ to 7¢ higher with likely increased war premium. Corn futures were mostly fractionally mixed.
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Major U.S. financial indices closed higher Monday, supported tech stocks and despite rising Treasury yield rates.
The Dow Jones Industrial Average closed 90 points higher. The S&P 500 closed 51 points higher. The NASDAQ was up 286 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were $1.83 lower to 19¢ higher through the front six contracts.
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Winter wheat planting accelerated last week with 36% in the ground Oct. 4, according to USDA’s weekly Crop Progress report. That was 9% more than the previous week but 10% behind the five-year average.
With potentially improved wheat grazing opportunity, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University provides insight on stocker prospects.
Although cattle prices are sharply lower than they were in July, Peel notes the price decline was steeper for calves versus heavy feeder cattle. Running the numbers for adding 300 pounds of gain to a 475-pound steer, Peel says current value of gain is $1.87 per pound.
“Even the current improvement in value of gain may not offer profitable stocker production possibilities,” Peel says in his weekly market comments. “It depends on costs of production, including animal gains, grazing cost, animal health, interest costs, etc. The market incentives for stocker production remain relatively low.”