Cattle futures firmed and mostly gained Wednesday, supported by oversold conditions.
Toward the close, Live Cattle futures were an average of 46¢ higher, except for an average of 42¢ lower in two contracts. Feeder Cattle futures were an average of $2.11 higher, except for an average of 94¢ lower in the front two contracts.
Negotiated cash fed cattle trade was light on moderate demand in the North through Wednesday afternoon, according to the Agricultural Marketing Service. FOB live prices were mostly $22o/cwt., which was $2 higher than a day earlier, but $7-$8 lower than last week. Dressed delivered prices so far this week are mostly $345, which is $10-$11 lower.
Choice boxed beef cutout value was $3.40 lower Wednesday afternoon at $385.13/cwt. Select was $6.30 lower at $362.68.
Grain and Soybean futures closed higher on Wednesday.
Toward the close and through the front four contracts, Corn futures were 10¢ to 13¢ higher through Dec ’27 on yield concerns.
Soybean futures were 20¢ to 23¢ higher through Mar ’28, helped along by more Chinese purchases.
Kansas City HRW Wheat were 21¢ to 38¢ higher through Dec ’27 with more premium, added for the Ukraine-Russia war and its impact on exports through the Black Sea.
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Major U.S. financial indices softened Wednesday with pressure from the latest inflation reading. The Personal Consumption Expenditures Price Index increased 0.2% month to month in July and was 3.7% higher year over year; both were slightly more than expected.
The Dow Jones Industrial Average closed 113 points lower. The S&P 500 closed 1 point lower. The NASDAQ was down 21 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 22¢ to 59¢ lower through the front six contracts.
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As previously reported in Cattle Current, President Trump announced a plan last Friday to waive out-of-quota tariffs for 90 days on up to 300,000 metric tons of imported “product” for ground beef. According to the President’s Truth social post, “We have a commitment that this beef will be sold at 25 percent below current market prices.”
Yesterday, four of the nation’s leading livestock and agricultural organizations sent a letter to President Trump, urging him to reverse the plan, which they believe would weaken the long-term stability of the U.S. cattle industry.
The American Farm Bureau Federation, Livestock Marketing Association, National Cattlemen’s Beef Association (NCBA), and United States Cattlemen’s Association called on the Administration to work with industry stakeholders on solutions that keep food affordable while protecting producers, consumers, and strengthening the nation’s ability to produce its own food.
The letter reads in part:
“We share your goal of keeping groceries affordable for American families. However, flooding the market with discounted foreign beef is not the way to rebuild the American cattle herd, strengthen food security, or lower grocery bills in a lasting way. This announcement has already driven cattle markets sharply lower and undermines producers at a critical time of year when they are marketing cattle and making herd-building decisions.
“Beef prices are in line with other consumer prices and reflect the inflated cost of raising cattle, grain, and forage. Ranchers and farmers are finally experiencing the strong beef demand needed to invest in their operations after years of drought, high input costs, processing plant disruptions, and other challenges that have reduced cattle numbers. This announcement will discourage investment in the U.S. cow herd and undo the progress producers have made.”