Cattle futures extended gains Monday, supported by stronger cash fed cattle prices late last week and more positive outside markets.
Feeder Cattle futures closed an average of 68¢ higher.
Live Cattle futures closed an average of 88¢ higher (12¢ higher in spot Oct to $1.30 higher at the back).
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were steady to $1 higher in the Southern Plains at $184-$185/cwt., steady to $4 lower in Nebraska at $183-$186 and $2-$3 lower in the western Corn Belt at $183-$185. Dressed delivered prices were mainly $4 lower at $290.
The weighted average five-area direct FOB fed steer price was $2.12 lower at $184.02. The weighted average dressed delivered steer price was $3.51 lower at $290.06.
Choice boxed beef cutout value was $1.71 higher Monday afternoon at $309.28/cwt. Select was 77¢ higher at $280.89/cwt.
Corn futures closed lower Monday on likely month-end profit taking. They were 2¢ lower through new crop contracts and then fractionally higher to 2¢ higher.
KC HRW Wheat closed mostly 1¢ higher.
Soybean futures closed 7¢ to 14¢ lower.
Major U.S. financial indices bounced back Monday on presumably oversold conditions and positioning ahead of this week’s Fed meeting.
The Dow Jones Industrial Average closed 511 points higher. The S&P 500 closed 49 points higher. The NASDAQ was up 146 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.48 to $3.23 lower through the front six contracts.
Although less than the previous month — due to weaker expected fed cattle prices — projections are mainly positive for cattle feeding returns through June of next year, based on the latest Historical and Projected Kansas Feedlot Net Returns.
For October through June, net returns for steers are projected to be positive in six months — from $46.48 per head in March to $233.93 in November. Feedlot cost of gain for those months ranges from $110.74/cwt. in May to $133.02 in October.
Negative steer returns are projected in three months, from -$28.22 per head in April to -$2.91 in June. Projected feedlot cost of gain for those months ranges from $108.43 to $119.29.
Keep in mind that estimates assume no price risk management.
Projections follow a similar pattern for fed heifers with positive returns estimated for October through June, except for one month. During the period, positive returns range from $25.94 per head in June to $190.97 in October. Feedlot cost of gain expectations range from $115.67/cwt. in June to $142.24 in October. A negative return of $2.97 per head is projected in April with a feedlot cost of gain of $119.50.