Negotiated cash fed cattle trade was limited on good demand in Kansas, Nebraska and the Western Corn Belt through Wednesday afternoon, according to the Agricultural Marketing Service.
Although too few transactions to trend, there were some early FOB live trades in Nebraska at $229-$230/cwt. and a few dressed delivered sales at $360-$370. Likewise, there were some early trades in the western Corn Belt at $230 and $360, respectively.
Last week, FOB live prices were $220 in the Southern Plains, mostly $229 in Nebraska and $228-$229 in the western Corn Belt. Dressed delivered prices were $358.
Choice boxed beef cutout value was 84¢ higher Wednesday afternoon at $359.59/cwt. Select was $3.32 higher at $348.28.
Higher wholesale beef values and the hint of stronger cash fed cattle prices helped lift Live Cattle futures Wednesday. Toward the close, they were an average of 54¢ higher (17¢ higher at the back to $1.02 higher at the front).
However, Feeder Cattle futures were an average of $1.09 lower toward the close, except for 2¢ higher in spot May, pressured by the recent increase in Corn futures and some softness in country cash prices, albeit at historically high levels.
Turning to the grain complex, futures continued higher Wednesday, led by Wheat, with likely continued short covering, the softer U.S. dollar and perhaps some weather premium.
Toward the close and through Mar ‘26 contracts, Corn futures were 5¢ to 6¢ higher. Kansas City Wheat futures were 3¢ to 4¢ higher. Soybean futures were 7¢ to 10¢ higher.
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Major U.S. financial indices closed sharply lower Wednesday, as Treasury yields climbed and investors fretted over the potential impact of the proposed U.S. budget if it makes its way through the House.
The Dow Jones Industrial Average closed 816 points lower. The S&P 500 closed 95 points lower. The NASDAQ was down 270 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 50¢ to 69¢ lower through the front six contracts.
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As the U.S.-China tariff saga unfolds, David Anderson, Extension livestock economist with Texas A&M University provides some perspective on beef trade between the two countries since tariffs and retaliatory tariffs were announced about six weeks ago.
“U.S. exports to China averaged 2.42 metric tons per week during the first quarter of 2025,” Anderson explains, in the most recent issue of In the Cattle Markets. “Following the announcements of tariffs and retaliation, exports dropped dramatically to only 17 metric tons for the week of May 8. That was the smallest weekly export total since the week of April 11, 2019, when zero tons were exported.”
However, he points out exports to Hong Kong averaged 369 metric tons per week during the first quarter of the year and 600 tons per week since early April. There is nothing definitive, but readers will recall that Hong Kong was commonly regarded as the backdoor for U.S. beef entering China during the years U.S. beef imports were prohibited.
For broader context, Anderson explains fresh and frozen beef muscle cut exports to China, a relatively new phenomenon, never exceeded 1,000 tons for a week until November 2019. Since then, he says China grew to become the third-largest importer of U.S. beef, accounting for about 1.7% of U.S. beef production in 2024.
“Often in trade, the closing of one market creates new, larger exports to other countries,” Anderson says. “Beef exports to Japan and South Korea over the last six weeks are larger than during the first quarter of the year. Some more detailed information might be necessary to determine if the increase is normal week-to-week variation, or some redirecting of shipments following the tariff announcement, or finding new sales.”