Cattle futures closed mainly higher Tuesday with follow-through support from the previous day’s New World screwworm news.
Toward the close, Live cattle futures were mixed from an average of 98¢ lower in the front four contracts to an average of $1.08 higher. Feeder Cattle futures were an average of $2.94 higher.
Negotiated cash fed cattle trade was inactive on light to moderate demand in all regions, through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $240/cwt. in the Southern Plains, $236-$238 in Nebraska and $236-$237 in the western Corn Belt. Dressed delivered prices were $370 in Nebraska and $368-$376 in the western Corn Belt.
Choice boxed beef cutout value was 59¢ lower Tuesday afternoon at $380.80/cwt. Select was $2.19 lower at $359.90.
Soybean futures were firm to higher.
Toward the close and through Jly contracts, Corn futures were 2¢ to 4¢ higher. Kansas City Wheat futures were 8¢ to 9¢ higher. Soybean futures were fractionally higher to 1¢ higher.
******************************
Major U.S. financial indices closed lower Tuesday, led by tech stocks.
The Dow Jones Industrial Average closed 88 points lower. The S&P 500 closed 36 points lower. The NASDAQ was down 215 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.05 to $1.37 higher through the front six contracts.
******************************
Closure of the U.S. border to cattle imports from Mexico continues to drive declines in Southern Plains feedlot numbers, while numbers increase in the North.
Reflecting on the latest monthly Cattle on Feed report, David Anderson, Extension livestock economist at Texas A&M University notes, Sept. 1 on-feed numbers in Texas were 9.9% fewer year over year and the least for the month since 2016.
Conversely, Anderson points out 4.7% more cattle were on feed year over year in Nebraska and 3.1% more in Kansas. Numbers were also higher in Iowa and South Dakota.
“Clearly, the border closure to cattle from Mexico is taking its toll,” Anderson explains, in the most recent issue of In the Cattle Markets. “Feeder cattle imports from Mexico normally increase seasonally in the Fall, so the disparity in regional feeding inventories is likely to grow, including Nebraska supplanting Texas as the largest cattle feeding state.”
Total cattle on feed Sept. 1 of 11.08 million head were 118,000 head fewer (-1.1%), according to the September Cattle on Feed report. The number represents feedlots with 1,000 head or more capacity. Placements of 1.78 million head in August were 196,000 head fewer (-9.9%) than the same time a year earlier.
“Placements have declined more than the on-feed inventory up to this point aided by a slower turnover rate in feedlots,” explains Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Smaller calf crops and limited feeder cattle supplies mean there is less cattle available for feedlot production. Feedlot production and beef production are expected to continue to decline into 2027.”