Cattle futures gained more steam on Tuesday, supported by the recent bounce in wholesale beef values and thoughts cash fed cattle prices could gain this week.
Toward the close, Live Cattle futures were an average of $4.52 higher. Feeder Cattle futures were an average of $6.56 higher.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $255-$256/cwt. in the Texas Panhandle, $256 in Kansas and $255-$258 in the North. Dressed delivered prices were $403-$405.
Choice boxed beef cutout value was $4.53 higher Tuesday afternoon at $399.58/cwt. Select was 44¢ higher at $376.85.
Grain and Soybean futures were mixed on Tuesday.
Toward the close, and through near Mar contracts, Corn futures were 1¢ lower to 2¢ higher. Soybean futures were 9¢ to 11¢ higher on reports of China purchases. Kansas City HRW Wheat futures were 1¢ to 6¢ lower.
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Major U.S. financial indices were mixed Tuesday with follow-through support from the U.S.-Iran peace agreement but pressure from tech stocks.
The Dow Jones Industrial Average closed 328 points higher. The S&P 500 closed 42 points lower. The NASDAQ was down 307 points.
Through mid-afternoon, West Texas Intermediate crude futures on the CME were $1.91 to $4.12 lower through the front six contracts.
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Even as New World screwworm dominates headlines and impacts some producers, Stephen Koontz, agricultural economist at Colorado State University notes lower new-crop feed prices will likely have a more pronounced market-level impact.
In a recent issue of In the Cattle Markets, Koontz points to the significant decline in feed-based futures prices the last few weeks, with Corn (Dec ‘26) down 20%, Wheat (Jly’26) down about 10% and Soybean Meal (Dec ’26) down more than 7%.
“These changes have occurred well ahead of the USDA Acreage report due out at the end of this month,” Koontz says. “…The futures market is communicating that drought and other production risks are substantially mitigated. Or at least that is what the funds think.”
Currently subdued grain prices should help support calf and feeder cattle prices, according to Koontz.
“The corn price, in isolation, has the ability to reduce costs of gain by 10-15¢ per pound of gain, and with lower other feeds, then the costs of gain will remain modest compared to the past five years,” Koontz explains. “Be aware, these price changes don’t impact feed in the bunk but rather have the potential to impact costs of gain into 2027 and the value of this year’s calves.”