Cattle futures closed narrowly mixed to lower Tuesday, unable to sustain gains from the previous session. Trade was paltry and the range skinny.
Live Cattle futures closed an average of 21¢ lower, except for unchanged in the back three contracts.
Feeder Cattle futures closed an average of 48¢ lower through the front five contracts (12¢ lower to $1.10 lower) and then 5¢ to 30¢ higher.
Wholesale beef values were firm to higher on moderate to fairly good demand and moderate to heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 63¢ higher Tuesday afternoon at $204.39/cwt. Select was $1.19 higher at $196.86.
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Major U.S. financial indices closed higher Tuesday, buoyed by tech stocks and positive quarterly earnings.
The Dow Jones Industrial average closed 55 points higher. The S&P 500 closed 11 points higher. The NASDAQ was up 49 points.
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Given increased fed cattle supplies, Brenda Boetel, Extension agricultural marketing specialist at the University of Wisconsin-River Falls expects year-over-year fed cattle prices for the remainder of the year to be 5-6% less.
“Prior to any trade war, expectations were that finished cattle prices would be approximately 5% lower in 2018 than 2017,” says Boetel, in the latest issue of In the Cattle Markets. “Given the current trade situation, lower wholesale beef prices and large pork production, prices may dip even lower, but the year-over year decreases should not be at the levels seen in the second quarter of 2018.”
For perspective, Boetel says first-quarter fed cattle prices (5-area Direct) were 2.8% above 2017, but second-quarter prices were 12% less.