Cattle futures softened Monday, pressured by bearish outside markets, along with month-end and quarter-end positioning.
Toward the close, Live Cattle futures were an average of 80¢ lower. Feeder Cattle futures were an average of $1.42 lower.
Negotiated cash fed cattle trade was inactive on light demand in the North through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly steady to $1 lower in Nebraska at mostly $222/cwt. and mostly $1 lower in the western Corn Belt at mainly $220/cwt. Dressed delivered prices were steady to $5 lower at $345-$350.
Last week’s weighted average five-area direct FOB live fed steer price was $1.20 lower at $220.67. The weekly weighted average dressed delivered fed steer price was $2.22 lower at $347.93.
Choice boxed beef cutout value was $1.65 higher Monday afternoon at $380.48/cwt. Select was $2.47 higher at $358.23.
Soybean futures led grains lower on Monday with news that China excluded soybeans from the list of U.S. agricultural products that will receive a tariff exemption. Harvest pressure and likely positioning for the end of the month and quarter, and ahead of Wednesday’s Grain Stocks report, likely also added pressure.
Through late afternoon, and through the front four contracts, Soybean futures were 27¢ to 31¢ lower. Corn futures were 5¢ to 6¢ lower. Kansas City HRW Wheat futures were 16¢ to 17¢ lower.
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Major U.S. financial indices closed lower Monday, as Treasury Yields continued to rise.
The Dow Jones Industrial Average closed 347 points lower. The S&P 500 closed 59 points lower. The NASDAQ was down 248 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) closed 36¢ to 90¢ higher through the front six contracts.
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Feedlots continue to battle low cattle numbers, in part, by feeding cattle for significantly longer, adding tonnage with the cattle they have.
In fact, based on Kansas State University (KSU) Focus on Feedlots data, Livestock Marketing Information Center (LMIC) analysts say the average number of days on feed was 195 days for steers from January through July of this year. That’s 14 days longer year over year.
“Year-to-date through mid-September, steer dressed weights have also remained above year-ago levels,” say LMIC analysts in the Sept. 25 Livestock Monitor. “Average steer dressed weights were 976 pounds compared with 944 pounds during the same period last year, an increase of 32 pounds (+3.4%). Heavier dressed weights have been supported by data from KSU Focus on Feedlots average daily gains, which showed that year-to-date through July, dressed weights averaged 3.61 pounds per day compared with 3.55 pounds last year for steers, an increase of 0.06 pounds per day.”
For broader perspective, LMIC analysts explain year-to-date beef production through mid-September was 17.3 billion pounds, down 775 million pounds (-4%) from the same period last year.