Cattle futures eased lower Tuesday amid two-sided trade and waiting this week’s cash fed cattle direction.
Toward the close, Live Cattle futures were an average of 55¢ lower. Feeder Cattle futures were an average of $1.06 lower.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $245/cwt. in the Southern Plains, mostly $240/cwt. in Nebraska and $240-$242 in the western Corn Belt. Dressed delivered prices were $378.
Choice boxed beef cutout value was 21¢ lower Tuesday afternoon at $367.55/cwt. Select was $2.45 lower at $362.90.
Grain and Soybean futures were higher Tuesday in the wake of the latest WASDE report (see below).
Toward the close, through near Sep contracts, Corn futures were unchanged to 1¢ higher. KC HRW Wheat futures were 3¢ higher. Soybean futures were 12¢ to 13¢ higher.
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Major U.S. financial indices wobbled on Tuesday, led by tech stocks and pressured by retail stocks with the latest data indicating flat consumer spending. Retail and food service sales in December were virtually unchanged month to month, according to the U.S. Census Bureau. The 2.4% increase year over year lags inflation.
The Dow Jones Industrial Average closed 52 points higher. The S&P 500 closed 23 points lower. The NASDAQ was down 136 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 14¢ to 22¢ lower through the front six contracts.
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USDA’s Economic Research Service (ERS) increased expected five-area direct average fed steer prices for this year, in the February World Agricultural Supply and Demand Estimates (WASDE). Compared to forecasts the previous month, and based on continued demand strength, the ERS increased prices $6 in the first quarter to $238/cwt., $4 in the second quarter to $238, $3 in the third quarter to $240 and $5 in the fourth quarter to $245. The projected annual average price increased $4 to $240.
Compared to the previous month, the ERS also increased projected beef production for the year by 185 million pounds (0.7%) to 25.7 billion pounds.
“Beef production is raised on higher slaughter of steers and heifers, increased cow slaughter and slightly heavier dressed weights,” say ERS analysts. “The USDA’s January Cattle report estimated that the 2025 calf crop was lower than the previous year, but as of January 1, more cattle held outside feedlots were available to be placed during the first half of 2026.”
This year’s estimated beef production would be just 81 million pounds less (-0.3%) than last year.
Among other WASDE highlights …
Corn
The 2025/26 U.S. corn outlook was for greater exports and lower ending stocks. Exports were raised 100 million bushels to 3.3 billion, reflecting sales and shipments to date. With no supply changes and use rising, corn ending stocks were down 100 million bushels to 2.1 billion. The season-average corn price received by producers was unchanged at $4.10 per bushel.
Soybeans
U.S. 2025/26 soybean supply and use projections were unchanged. The season-average soybean price was projected unchanged at $10.20 per bushel. Soybean meal and oil prices were unchanged at $295 per short ton and 53¢ per pound, respectively.
Wheat
The outlook for 2025/26 U.S. wheat was for unchanged supplies, modestly lower domestic use, unchanged exports and slightly higher ending stocks. Domestic use was lowered on reduced food use as indicated by the NASS Flour Milling Products report, issued on Feb. 2. Ending stocks increased to 931 million bushels, 9% more than last year and the most since 2019/20. The projected 2025/26 season-average farm price remained at $4.90 per bushel.