Cattle futures climbed back Monday as funds appeared to retrench following last week’s losses.
Toward the close, Live cattle futures were an average of $4.42 higher. Feeder Cattle futures were an average of $6.81 higher.
Negotiated cash fed cattle trade was inactive on light to moderate demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $2 lower in the Southern Plains at $240/cwt. and $2-$3 lower in the North at $240. Dressed delivered trade was $5-$8 lower at $375-$378.
The five-area direct weighted average FOB live fed steer price last week was $3.22 lower at $239.33/cwt. The weighted average dressed delivered fed steer price was $7.00 lower at $376.15.
Choice boxed beef cutout value was $1.51 lower Monday afternoon at $398.53/cwt. Select however, was 36¢ higher at $378.80.
Turning to grain complex, futures turned lower on likely profit taking from the previous session’s gains.
Toward the close and through away Jly contracts, Corn futures were 5¢ to 6¢ lower. Kansas City Wheat futures were unchanged to fractionally lower. Soybean futures were mostly 3¢ to 4¢ lower.
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Major U.S. financial indices closed higher Monday, led by tech stocks and positive comments from the White House regarding trade talks with China.
The Dow Jones Industrial Average closed 49 points higher. The S&P 500 closed 30 points higher. The NASDAQ was up 207 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 50¢ to 65¢ higher through the front six contracts.
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“Beef prices remain strong, and beef demand is robust despite the availability of favorably priced alternative proteins,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
For perspective, Peel notes retail beef prices posted another record high in August, according to USDA data. The all-fresh retail beef price was 12.6% higher year over year, which was more than a dollar higher at $9.18 per pound. He adds that even as wholesale beef prices decline seasonally, last week’s value was 31.7% higher year over year, with all primal values higher for the period.
Conversely, Peel points out retail pork prices in August were lower month to month and 2.2% higher year over year. Retail broiler prices were fractionally higher compared to July and were 1.9% higher year over year.
“Moving into the fall, consumer demand shifts from a summer grilling focus to crock-pot cooking and increased restaurant visits,” Peel says. “This may slightly change relative values among beef products, but beef product demand continues strong at all levels.”