Following early support, Cattle futures drifted to a mostly marginally lower close on Tuesday, amid light activity and bearish outside markets.
Except for 17¢ higher in near Jun, Live Cattle futures closed an average of 43¢ lower (17¢ to 80¢ lower).
Other than 7¢ higher in spot Apr and 65¢ higher in the back contract, Feeder Cattle futures closed an average of 47¢ lower.
Wholesale beef values continued higher on Tuesday. Choice boxed beef cutout value was $2.54 higher in the afternoon at $217.65/cwt. ($5.89 higher in the last two days). Select was 39¢ higher at $202.11.
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Major U.S. financial indices closed sharply lower on Tuesday. Key pressure, according to many analysts, was the yield on the 10-year Treasury bond surpassing 3% for the first time in four years. Rising treasury yields are tied to higher inflation and higher interest rates, which can challenge consumer spending and related stocks. Pressure also came from a steep decline in Caterpillar, a bellwether for current economic conditions and future growth.
The Dow Jones Industrial Average closed 400 points lower. The S&P 500 closed 35 points lower. The NASDAQ closed 121 points lower.
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Spring planting continues to lose ground, relative to last year and the average, according to the weekly Crop Progress report.
5% of the corn is planted, which is 10% less than last year and 9% less than the 5-year average.
2% of soybeans are planted, which is 3% less than last year, but on par with average.
31% of oats are planted, compared to 55% last year and 55% for average. 26% have emerged, compared to 36% last year and 35% for average.
13% of winter wheat is headed, which is 17% less than last year and 6% less than average. 31% is rated in Good (25%) or Excellent condition (6%), compared to 54% last year. 37% is in Poor (22%) or Very Poor (15%) condition, compared to 13% last year.