WLI

Cattle futures were lower again, pressured by weaker early cash fed cattle prices and perhaps prescience about news from Tyson later in the day that it was shuttering its packing facility in Joslin, Ill., ending production at its case ready facility in Eagle Mountain, Utah and seeking a buyer for its packing facility in Pasco, Wash. (see below).

Toward the close, Live Cattle futures were an average of $2.58 lower. Feeder Cattle futures were an average of $1.68 lower.

Negotiated cash fed cattle trade was moderate on moderate to good demand in Nebraska through Thursday afternoon, according to the Agricultural Marketing Service. FOB live prices were $2 lower than the previous day and $7 lower than last week at mostly $228/cwt. Dressed delivered prices were $2 lower than the previous day and mostly $5-$8 lower than last week at $362-$365.

Trade was limited on moderate demand in the western Corn Belt. Although too few transactions to trend, there were some early FOB live trades at $228-$230 and some dressed delivered trades at $360-$368. Prices there last week were $235 and $370, respectively.

In Kansas, trade was mostly inactive on light demand. FOB live prices last week were $235.

Choice boxed beef cutout value was $3.62 higher Thursday afternoon at $375.90/cwt. Select was 57¢ lower at $349.24.

Grain and Soybean futures were mainly lower Thursday with likely profit taking from the previous session’s strong gains tied to support from the August World Agricultural Supply and Demand Estimates.

Toward the close and through the front four contracts, Corn futures were 8¢ lower. Soybean futures were fractionally lower to 2¢ higher. Kansas City HRW Wheat were fractionally higher to 3¢ lower.  

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Major U.S. financial indices closed higher Thursday.

The Dow Jones Industrial Average closed 69 points higher. The S&P 500 closed 50 points higher. The NASDAQ was up 214 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 90¢ to $2.13 lower through the front six contracts.

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Tyson Foods announced Thursday that it will end operations at its Joslin, Illinois, beef facility and its Eagle Mountain, Utah, case-ready facility. You likely recall the company closed its plant at Lexington, Neb. early this year and reduced production at its plant in Amarillo, Texas. Additionally, Tyson Foods is pursuing the sale of its Pasco, Washington, beef facility.

According to the company statement, “Tyson Foods will anchor its beef business around three strategically located beef facilities in the central United States: Dakota City, Neb.; Holcomb, Kan. and Amarillo, Texas, to create a more competitive footprint amidst one of the most historic cattle shortages the country has ever experienced. Recent USDA cattle inventory data, which included continued evidence of limited heifer retention, indicates these supply constraints are likely to persist, requiring strategic action.” 

Cattle futures stepped lower Wednesday, pressured in part the continued decline in open interest.

Toward the close, Live Cattle futures were an average of $2.48 lower. Feeder Cattle futures were an average of $4.93 lower.

Negotiated cash fed cattle trade ranged from light on moderate demand in Nebraska to mostly inactive on light demand in Kansas through Wednesday afternoon, according to the Agricultural Marketing Service.

There were some early dressed delivered trades in Nebraska mostly $2 lower at mainly $368/cwt. Last week, FOB live prices were $235.

Elsewhere last week, FOB live prices were $235 and dressed delivered prices in the western Corn Belt were mostly $370.

Choice boxed beef cutout value was 97¢ higher Wednesday afternoon at $372.28/cwt. Select was 1¢ higher at $349.81.

Grain and Soybean futures rallied higher on Wednesday, supported by the August World Agricultural Supply and Demand Estimates (see below), which reduced projected yield for corn and soybeans, while increasing forecast harvested acres for both.

Toward the close and through the front four contracts, Corn futures were 19¢ to 20¢ higher. Soybean futures were 11¢ to 14¢ higher. Kansas City HRW Wheat were 20¢ to 22¢ higher with added premium for disruptions to exports from Ukraine and Russia.

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Major U.S. financial indices closed mixed Wednesday. Support included positive inflation news.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% on a seasonally adjusted basis in July after falling 0.4% percent in June, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.4% before seasonal adjustment.

The Dow Jones Industrial Average closed 21 points lower. The S&P 500 closed 20 points higher. The NASDAQ was up 143 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were narrowly mixed, from 6¢ lower to 20¢ higher through the front six contracts.

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USDA’s Economic Research Service (ERS) cut projected five-area direct weighted average fed steer prices for the remainder of this year and the first half of next year in the August World Agricultural Supply and Demand Estimates (WASDE).

Compared to the previous month, based on recent weaker than expected demand for fed cattle, forecast prices for this year declined $13 in the third quarter to $255/cwt. and $10 in the fourth quarter to $255 for an annual average of $251.10, which was $5.75 lower.

That was with this year’s beef production estimated to be 321 million pounds less (-0.1%) than last month at 24.97 billion pounds. The total would be 1 billion pounds less (-4%) than the previous year’s total. Beef production was lowered due to a slower rate of steer, heifer and cow slaughter through the end of the year.

For next year, fed steer prices declined $5 to $250 in the first quarter and $255 in the second quarter with an annual average price of $254.

Among other WASDE highlights…

Corn

The 2026/27 U.S. corn outlook was for lower supplies, unchanged domestic use, larger exports, and smaller ending stocks. Corn production was forecast at 16.0 billion bushels, up just 13 million from last month with a 1.2-million acre increase in harvested area that was largely offset by a reduced yield forecast. This would be the second largest U.S. corn harvest on record. The season’s first survey-based corn yield forecast was down 2.3 bushels per acre from last month to 180.7 bushels per acre. Corn beginning stocks were lowered 75 million bushels to 1.9 billion, reflecting raised exports for 2025/26.

Total U.S. corn use for 2026/27 was forecast 75 million bushels higher to 16.3 billion. Exports were raised 75 million bushels to 3.3 billion, reflecting increased global demand and constrained exports for Ukraine. With use rising more than supply, ending stocks were lowered 137 million bushels to 1.7 billion.

The season-average corn price received by producers was raised 10¢ per bushel to $4.50, reflecting tighter ending stocks and expectations for futures and cash prices to date.

Soybeans

U.S. 2026/27 soybean production was projected at 4.5 billion bushels, up 44 million due to a higher harvested area and a slightly lower yield. Harvested area was revised up 1.4 million acres from the July projection to 85.8 million on higher acreage for Missouri, Mississippi, and Minnesota. The first survey-based soybean yield forecast of 52.7 bushels per acre was 0.3 bushels less than last month’s projection and last year’s record yield. Soybean supplies for 2026/27 were projected up 39 million bushels from last month as higher production was partly offset by lower beginning stocks due to a slight increase to crush in the prior marketing year.

Prices were unchanged for 2026/27 with the U.S. season-average soybean farm price forecast at $11.40 per bushel, the soybean meal price at $310 per short ton and the soybean oil price at 70¢ cents per pound.

Wheat

The outlook for 2026/27 U.S. wheat was for lower supplies, unchanged domestic use and exports, and smaller ending stocks. Supplies were reduced on lower production, which was forecast at 1,531 million bushels, down 5 million from last month on decreased harvested area and yield. Projected 2026/27 ending stocks were reduced 5 million bushels to 717 million, down 22% from last year. The projected 2026/27 season-average farm price was raised 20¢ per bushel to $6.20 on a lower stocks-to-use ratio and expectations for futures and cash prices for the remainder of the marketing year.

Cattle futures lost some steam Tuesday but were mostly higher.

Live Cattle futures were narrowly mixed, from an average of 41¢ lower in the front four contracts to an average of 38¢ higher.

Feeder Cattle futures were an average of 64¢ higher, except for 78¢ lower in the front contract.

Negotiated cash fed cattle trade was mostly inactive on light demand through Tuesday afternoon, according to the agricultural Marketing Service.

FOB live prices last week were mostly $235/cwt. Dressed delivered prices were mostly $370.

Choice boxed beef cutout value was 6¢ lower Tuesday afternoon at $371.31/cwt. Select was $1.04 lower at $349.80.  

Grain and Soybean futures were lower on Tuesday, pressured by more moisture and positioning ahead of Wednesday’s World Agricultural Supply and Demand Estimates.

Toward the close and through the front four contracts, Corn futures were 1¢ lower.  Soybean futures were 10¢ to 11¢ lower. Kansas City HRW Wheat were 12¢ to 14¢ lower.

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Major U.S. financial indices softened Tuesday with higher crude oil prices and defensiveness ahead of the CPI report due on Wednesday.

The Dow Jones Industrial Average closed 183 points lower. The S&P 500 closed 24 points lower. The NASDAQ was down 159 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 2¢ lower to $1.27 higher through the front six contracts.

Cattle futures were mainly higher Friday, helped along by last week’s stronger negotiated cash fed cattle prices.

Toward the close, Live Cattle futures an average of $1.23 higher. Feeder Cattle futures were an average of $1.09 higher, except for an average of 98¢ lower in the front two contracts.

Negotiated cash fed cattle trade was inactive on light demand through Monday afternoon, according to the agricultural Marketing Service.

FOB live prices last week were mostly $235/cwt., which was $2 higher in Kansas, $2-$3 higher in Nebraska and mostly steady to $3 higher in the western Corn Belt. Dressed delivered prices were mostly $370, which was $5-$10 higher in Nebraska and mostly $10 higher in the western Corn Belt.

Last week’s five-area direct weighted average FOB live fed steer price was $2.15 higher at $235.21. The weekly weighted average dressed delivered fed steer price was $8.50 higher at $371.11.

Choice boxed beef cutout value was $7.06 higher Monday afternoon at $371.42/cwt. Select was $1.53 lower at $350.84.

Grain and Soybean futures were mixed again on Monday with likely continued positioning ahead of Wednesday’s World Agricultural Supply and Demand Estimates.

Toward the close and through the front four contracts, Corn futures were unchanged to fractionally lower. Soybean futures were 3¢ to 4¢ higher. Kansas City HRW Wheat were 1¢ lower to 1¢ higher.

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Major U.S. financial indices closed little changed but to the low side on Monday as crude oil prices increased on the U.S.-Iran war.

The Dow Jones Industrial Average closed 60 points lower. The S&P 500 closed 4 points lower. The NASDAQ was down 85 points.

Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $2.96 to $3.56 higher through the front six contracts.

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“Cattle and beef markets are expected to continue recovering from the summer correction, but the persistent summer doldrums may make it a slow grind for the next few weeks,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.

In his weekly market comments, Peel points out recent hot temperatures have added market pressure, taking a seasonal toll on consumer demand

“Wholesale beef values have turned slightly higher in the past week with sputtering attempts at a last kick higher for Labor Day demand,” Peel notes. “Prolonged triple digit heat in many regions is making that more difficult. After a brief August boost, average boxed beef prices typically decrease to the end of the year, although tenderloin and ribeye prices move seasonally higher to the end of the year.  Strong boxed beef prices in the second half of 2025 may be hard to match this year, even with good demand.”

Listen to more of Peel’s market insights here.

Cattle futures closed mainly higher Friday, helped along by the week’s stronger negotiated cash fed cattle prices and wholesale beef values.

Live Cattle futures closed an average of 64¢ higher (17¢ to $1.40 higher), except for an average of 15¢ lower in two contracts.

Feeder Cattle futures closed an average of $2.89 higher.

Week to week on Friday, Live Cattle futures closed an average of $1.45 lower, except for an average of 26¢ higher in the back two contracts. During the same period, Feeder Cattle futures were an average of $3.03 lower, except for an average of $2.54 higher in the front two contracts.

Negotiated cash fed cattle trade ranged from light on moderate demand in Nebraska to mostly inactive on light demand elsewhere through Friday afternoon, according to the agricultural Marketing Service.

For the week, FOB live prices were $2 higher in Kansas at $235/cwt., $2-$3 higher in Nebraska at $235 and steady to $4 higher in the western Corn Belt at $235-$236. Dressed delivered prices were $5-$10 higher in Nebraska at $370 and $10 higher in the western Corn Belt at $370-$380.

Choice boxed beef cutout value was 50¢ higher Friday afternoon at $364.36/cwt. Select was $2.59 higher at $352.37. Week to week on Friday, Choice was $2.98 higher and Select was $6.14 higher.

Estimated total cattle slaughter last week of 509,000 head was 3,000 head fewer than the previous week and 28,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 16.4 million head was 1.5 million head fewer (-8.1%) than the same time a year earlier. Estimated year-to-date beef production of 14.6 billion pounds was 865.4 million pounds less (-5.6%) than the same time last year.

Grain and Soybean futures were mixed again on Friday with likely positioning ahead of this week’s World Agricultural Supply and Demand Estimates.

Corn futures were unchanged to fractionally higher through Jly ’27 and then fractionally lower to 1¢ lower. Soybean futures closed mostly fractionally lower to 1¢ lower. Kansas City HRW Wheat closed 10¢ to 14¢ higher through Jly ’27 and then 7¢ to 9¢ higher.

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Major U.S. financial indices were higher Friday with support apparently including a more negative labor outlook than expected, which bolstered investor hopes it would keep the Fed from raising interest rates.

Non-farm payroll employment declined by 23,000 in July with unemployment rate little changed at 4.1%, according to the U.S. Bureau of Labor Statistics.

Average hourly earnings for all employees on private nonfarm payrolls in July were little changed at $37.62. Over the year, average hourly earnings have increased by 3.2%.

The Dow Jones Industrial Average closed 152 points higher. The S&P 500 closed 47 points higher. The NASDAQ was up 342 points.

West Texas Intermediate Crude Oil futures (CME) 89¢ to $1.05 higher through the front six contracts.

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The U.S. Senate Committee on Agriculture, Nutrition and Forestry failed to advance the Farm Bill last week, yet managed to approve an amendment, which could pave the way to making Country of Origin Labeling (COOL) mandatory once again. You might recall that COOL became mandatory in 2013 until Congress repealed the law in 2016 because the World Trade Organization (WTO) found it to be a violation of U.S. WTO obligations. Never mind that USDA is currently actively promoting increased participation in the voluntary Product of USA labeling program.

Earlier this month, the Meat Institute released a new economic analysis by Decision Innovation Solutions, which finds that reinstating mandatory Country of Origin Labeling for beef and pork would impose more than $1 billion annually in added costs across the U.S. meat supply chain, increasing expenses for livestock producers, meat processors, retailers, and consumers while providing little evidence of increased consumer demand for labeled products.

More specifically, according to the study, reinstating mandatory COOL would cost the beef and pork industries approximately $1.02 billion in the first year alone, including $721 million for beef and $296 million for pork. Most of these expenses would be recurring operational costs rather than one-time investments.

Over time, those costs would continue to grow, reaching an estimated $4.8 billion over five years and $10.1 billion over 10 years.

The study concludes that compliance costs would largely be passed through the supply chain and reflected in higher food prices. Researchers estimate consumers would pay approximately $835 million more annually for beef purchases and $284 million more annually for pork purchases.