Cattle futures softened to start the week, extending losses from the previous session. Pressure included last week’s softer cattle prices, light trade and demand uncertainty.
Other than 7¢ to 22¢ higher in the front three contracts, Live Cattle futures closed an average of 66¢ lower (15¢ lower to $1.10 lower at the back).
Feeder Cattle futures closed an average $1.17 lower.
Choice boxed beef cutout value was $6.90 lower Monday afternoon at $254.58/cwt. Select was $15.30 lower at $231.12.
Corn futures closed 2¢ higher.
Soybean futures closed mostly 1¢ lower through Aug ‘21 and then mainly 3¢ higher.
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Major U.S. financial indices closed higher on Monday, extending gains from the previous session’s strong performance. Support included carryover optimism from last Friday’s bullish employment report.
The Dow Jones Industrial Average closed 461 points higher. The S&P 500 closed 38 points higher. The NASDAQ closed 110 points higher.
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The weighted average five-area direct live fed steer price was $3.32 lower week to week on Friday at $112.39/cwt. The dressed price was $4.79 lower at $179.04. Prices were $113.76 and $184.21 at the same time last year.
However, the range in negotiated cash fed cattle prices continued across a broad range, with live prices in the Southern Plains at mostly $105-$117/cwt., $110-$118 in Nebraska and $108-$114 in the western Corn Belt. Dressed prices were at $175-$185.
“This wide range in prices is largely due to regional supply and demand. Regions with a large supply of market ready cattle and limited demand are seeing the lowest prices, while regions with strong demand and a relatively smaller supply are seeing higher prices,” explains Andrew P. Griffith, agricultural economist with the University of Tennessee, in his weekly market comments. “This may not be the only reason for the disparity in prices as other factors are at play, but supply and demand are generally what push prices one way or the other. It is difficult to predict what prices will be as the market moves through the glut of cattle, but there is sure to be downward pressure throughout the summer and fall. The market is attempting to align itself with supply and demand.”
On the other hand, Griffith says price expectations for late-summer and early fall feeder cattle continue to improve.