Cattle futures settled narrowly mixed on Tuesday after a surge of support to start the day.
Live Cattle futures closed an average of 33¢ lower, except for 77¢ higher in spot Apr and 25¢ higher in Feb.
Other than 37¢ higher in spot Apr, Feeder Cattle futures edged lower (5¢ to 42¢ lower).
Choice boxed beef cutout value was $1.53 lower Tuesday afternoon at $213.51/cwt. Select was $1.81 lower at $201.33.
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Major U.S. financial indices bounced sharply higher on Tuesday with conciliatory comments from China’s president boosting investor optimism. Crude oil prices also offered support.
The Dow Jones Industrial Average closed 428 points higher. The S&P 500 closed 43 points higher. The NASDAQ closed 143 points higher.
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Projected total red meat and poultry production was lowered in the latest World Agricultural Supply and Demand Estimates (WASDE). Anticipated beef production was reduced from the previous month on lower first-half slaughter and lighter weights.
“Cattle and hog price forecasts are reduced from last month as demand for cattle and hogs has softened and supplies are expected to be large in the coming quarters,” said analysts with USDA’s Economic Research Service.
The annual fed steer price (5-area direct) was estimated $2-$4 lower at $114-$119/cwt. Second-quarter prices are projected at $114-$118; third quarter at $106-$114; fourth quarter at $108-$118.
Ending corn stocks were increased 55 million bu. on 50 million fewer bu. for feed and residual use. The projected range for the season-average corn price received by producers was unchanged at the midpoint with the range narrowed to $3.20 to $3.50/bu.
U.S. soybean stocks were projected 5 million bu. less with record-large soybean crush. The season-average soybean price is forecast at $9.10 to $9.50/bu., unchanged at the midpoint. The soybean oil price is projected at 30.5¢ to 32.5¢/lb., also unchanged at the midpoint. Soybean meal prices are projected at $340 to $360 per short ton, up $10.00 at the midpoint.
Ending U.S. wheat stocks were estimated 30 million bu. higher on lower feed and residual use. Based on NASS prices and marketings reported to date, along with price expectations for the rest of 2017-18, the season-average farm wheat price is unchanged at the range of $4.60 to $4.70/bu.