Cattle futures closed lower Thursday but off session lows with no obvious driver.
Toward the close, Live Cattle futures were an average of $3.25 lower. Feeder Cattle futures were an average of $5.87 lower.
Negotiated cash fed cattle trade was active on very good demand in all major cattle feeding regions through Thursday afternoon, according to the Agricultural Marketing Service.
FOB live prices were mainly $1 higher in the Southern Plains at $256/cwt., $3-$6 higher in Nebraska at mostly $258-$260 and steady to $5 higher in the western Corn Belt at $255-$260. Dressed delivered prices were mostly $2 higher in Nebraska at mainly $402 and steady to $3 higher in the western Corn Belt at $400-$403.
Choice boxed beef cutout value was $2.68 lower Thursday afternoon at $386.94/cwt. Select was $5.21 lower at $384.42.
Grain and Soybean futures trended lower on Thursday, led by reduced weather premium in hard red winter wheat.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were mostly 19¢ to 22¢ lower. Corn futures were unchanged to 1¢ lower. Soybean futures were mostly 1¢ to 4¢ lower through near Nov.
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Major U.S. financial indices turned lower Thursday, as Crude Oil prices gained on resurgent tensions between the U.S. and Iran.
The Dow Jones Industrial Average closed 313 points lower. The S&P 500 closed 28 points lower. The NASDAQ was down 32 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 10¢ lower to 53¢ higher through the front six contracts.
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Narrow, sometimes negative, daily Choice-Select spreads in recent weeks prompt plenty of pondering. Undoubtedly, supply is part of the story with so little Select available relative to Choice and higher grading carcasses.
On the demand side, Charley Martinez, agricultural economist at the University of Tennessee says , “Given the recent rise in fuel costs, income for other items, and weekly spending at stores has likely taken a hit, which tends to push consumers toward more price-sensitive food choices and away from higher-priced beef items that rely on Choice-level marbling. As a result, downstream buyers have placed less emphasis on quality premiums, compressing the spread even when supply conditions might otherwise support it.”
At the same time, Martinez explains, in the latest issue of In the Cattle Markets, “Higher fuel costs raise transportation and operating expenses throughout the beef supply chain, limiting packers’ and retailers’ willingness to pay up for higher grades. Together, possibly weaker consumer demand for premium beef and rising fuel-related costs help explain why the 2026 spread remains subdued, signaling diminished incentives for quality premiums relative to periods like 2025 when consumer demand conditions were stronger.”