Daily Market Highlights

Overall, futures traders seemed to look past the bearish placement number in Friday’s monthly Cattle on Feed report, seeming instead to focus on strong fundamentals, including last week’s higher cash fed cattle trade. However, the bounce higher in Corn futures helped dampen Feeder Cattle futures.

Live Cattle futures closed an average of 26¢ higher, except for unchanged in the back contract.

Feeder Cattle futures closed an average of $1.07 lower, (50¢ to $1.52 lower).

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $3 higher in the Texas Panhandle at $183/cwt., $2-$3 higher in Kansas at $182-$183, $2 higher in Nebraska at $183 and $2-$4 higher in the western Corn Belt at $182-$184. Dressed delivered prices in Nebraska were $5 higher at $292 and $5-$7 higher in the western Corn Belt at $290-$292.

The five-area direct weighted average FOB live steer price last week was $2.60 higher at $182.95/cwt. The average dressed delivered steer price was $5 higher at $291.61.

Choice boxed beef cutout value was $1.18 higher Monday afternoon at $301.79/cwt. Select was $1.68 higher at $287.99/cwt.

Grain futures bounced back Monday, still trying to carve a bottom.

Corn futures closed 6¢ to 8¢ higher through Jly ’25 and then 1¢ to 3¢ higher.

KC HRW Wheat futures closed 7¢ to 15¢ higher through Mar ’25 and then mostly 4¢ higher.

Soybean futures closed 1¢ to 3¢ higher through near Aug and then mostly fractionally lower to 2¢ lower.

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Major U.S. financial indices ended little changed but to the downside on Monday.

The Dow Jones Industrial Average closed 63 points lower. The S&P 500 closed 19 points lower. The NASDAQ was down 20 points.

West Texas Intermediate Crude Oil futures (CME) closed 80¢ to $1.09 higher through the front six contracts.

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Beef demand was down slightly year over year in 2023, according to the demand index calculated by the Livestock Marketing Information Center (LMIC). Even so, in the latest Livestock Monitor, analysts say retail beef demand the last four years was the highest since 2000. Demand last year was still above index levels for 2000-19.

LMIC’s meat demand index is based on the Consumer Price Index level of 2000.

On the other side of the fence, LMIC analysts say retail pork demand had been gaining ground for several years after seeing a low point around 2012. However, it also faltered a touch last year.

Cattle futures renewed gains Friday, supported by stronger cash fed cattle prices and perhaps positioning ahead of the Cattle on Feed report (see below).

Live Cattle futures closed an average of $1.31 higher ($1.00 higher at the back to $2.10 higher in spot Feb). They were an average of $1.19 higher week to week on Friday.

Feeder Cattle futures closed an average of $2.16 higher, ($1.07 higher at the back to $3.07 higher toward the front. They were an average of $3.74 higher week to week.

Negotiated cash fed cattle trade ranged from light to moderate on light to moderate demand to moderate on moderate demand through Friday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were $3 higher in the Texas Panhandle at $183/cwt., $2-$3 higher in Kansas at $182-$183, $2 higher in Nebraska at $183 and $4 higher in the western Corn Belt at $184. Dressed delivered prices in Nebraska were $5 higher at $292. Dressed prices in the western Corn Belt the previous week were $285.

Choice boxed beef cutout value was 82¢ higher Friday afternoon at $300.61/cwt. Select was 50¢ higher at $286.31/cwt. Week to week on Friday, Choice was $4.41 higher, while Select was 35¢ lower.

Estimated total cattle slaughter last week of 593,000 head was 15,000 head fewer than the previous week and 21,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 4.8 million head was 272,000 head fewer (-5.4%) than the same week the previous year. Year-to-date estimated beef production of 4 billion pounds was 177.4 million pounds less (-4.3%).

Grain and Soybean futures eroded further Friday with pressure including producer selling and anemic international demand.

Corn futures closed mostly 3¢ to 5¢ lower. They were an average of 12’4¢ lower through the front six contracts week to week.

KC HRW Wheat futures closed mostly 6¢ to 8¢ lower.

Soybean futures closed 9¢ to 14¢ lower in the front three contracts and then mostly 2¢ to 4¢ lower.

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Major U.S. financial indices ended little changed on Friday.

The Dow Jones Industrial Average closed 62 points higher. The S&P 500 closed 1 point higher. The NASDAQ was down 44 points.

CME WTI Crude Oil futures closed $1.45 to $2.12 lower through the front six contracts.

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Traders may view Friday’s monthly Cattle on Feed report as slightly bearish.

Although, 7.4% less than the previous year (-144,000 head), January feedlot placements (capacity of 1,000 head or more) were 4.4% more than the average of analyst estimates.

In terms of placement weights, 43% went on feed weighing 699 pounds or less, 47% weighing 700-899 pounds and 10% weighing 900 pounds or more.

Marketings in January of 1.8 million head were just 2,000 head fewer than the previous year and in line with estimates ahead of the report.

Cattle on feed Feb. 1 of 11.8 million head were 43,000 head more than the previous year, also in line with expectations.

Cattle futures softened Thursday with likely positioning ahead of Fridays monthly Cattle on Feed report. Many expect the report to indicate a sharp decline in feedlot placement, about 12% less year over year in January, based on average analyst estimates. January marketing are estimated to be about even, while the Feb. 1 on-feed inventory is projected to be up slightly.

Live Cattle futures closed an average of 84¢ lower.

Feeder Cattle futures closed an  average of $1.44 lower, except for an average of 56¢ higher in the front three contracts.

Negotiated cash fed cattle trade ranged from a standstill in the South to mostly inactive on light demand in the North, with too few transactions to trend, through Thursday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $180/cwt. in the Southern Plains, $181 in Nebraska and $180 in the western Corn Belt. Dressed delivered prices were mostly $287 in Nebraska and $285 in the western Corn Belt.

Choice boxed beef cutout value was $1.99 higher Thursday afternoon at $299.79/cwt. Select was $1.35 higher at $285.81/cwt.

Grain and Soybean futures continued searching for a bottom Thursday with apparent added pressure from recent producer selling.

Corn futures closed 4¢ to 5¢ lower through Dec. ’24 and then mostly 2¢ lower.

KC HRW Wheat futures closed mostly fractionally lower to 3¢ lower.

Soybean futures closed 10¢ to 13¢ lower through Jly ’25. and then mostly 7¢ to 8¢ lower.

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Major U.S. financial indices roared higher, fueled by tech stocks.

The Dow Jones Industrial Average closed 456 points higher. The S&P 500 closed 105 points higher. The NASDAQ was up 466 points.

CME WTI Crude Oil futures closed 47¢ to 70¢ higher through the front six contracts.

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Aggregating everything from cow-calf operations through feedlots, cattle sector returns are expected to be less this year as lower traded volume offsets higher prices, according to Matthew Diersen, Extension risk and business management specialist at South Dakota State University. His statement refers to the latest Agricultural Prices from USDA’s Economic Research Service, published earlier this month.

“At the same time, higher feeder animal expenditures are expected to continue,” Diersen says, in a recent issue of In the Cattle Markets. “Another major cost item, interest expense, is expected to remain high, as steady to potentially lower interest rates are offset by higher loan volumes. At the local level, higher rates have been discussed as they have influenced returns to storage on crops, resulted in higher operating expenses overall, and factored into the value of replacement heifers.”

Diersen points out multi-state grazing fee rates in the same report were higher last year for animal units and cow-calf pairs. “High prices for substitute feedstuffs (corn and hay) for much of 2023 likely placed upward pressure on grazing fees,” he says.

On the other hand, corn and hay prices are projected to be lower year over year in 2024 due to larger expected ending stocks.

A final cost pressure depends on individual perspective, according to Diersen.

“Feeder cattle continue to trade at high levels,” Diersen says. “The CME Feeder Cattle Index is a weighted average price of 700–899-pound steers traded at AMS-reported sales across 12 states. The index is a common benchmark that reached an all-time high of $254.10 on Sept. 20, 2023. The recent index values have been around $243.00, or record level for this time of year.”

Cattle futures continued to crawl mostly higher Wednesday.

Live Cattle futures closed an average of 44¢ higher, except for 42¢ lower in spot Feb.

Feeder Cattle futures closed an  average of 45¢ higher, except for an average of 20¢ lower in two contracts.

Negotiated cash fed cattle trade ranged from a standstill in the South to mostly inactive on light demand in the North, with too few transactions to trend, through Wednesday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $180/cwt. in the Southern Plains, $181 in Nebraska and $180 in the western Corn Belt. Dressed delivered prices were mostly $287 in Nebraska and $285 in the western Corn Belt.

Choice boxed beef cutout value was 43¢ higher Wednesday afternoon at $297.80/cwt. Select was $3.36 lower at $284.46/cwt.

Corn futures closed mostly 3¢ to 7¢ lower.

KC HRW Wheat futures closed mostly 3¢ to 4¢ lower.

Soybean futures closed 8¢ to 18¢ lower.

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Major U.S. financial indices closed little changed Wednesday.

The Dow Jones Industrial Average closed 48 points higher. The S&P 500 closed 6 points higher. The NASDAQ was down 49 points.

West Texas Intermediate Crude Oil futures (CME) closed 38¢ to 87¢ higher through the front six contracts.

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Although he says forage supplies, calf prices and production costs are the primary determinants of herd expansion, Kenny Burdine, Extension livestock economist the University of Kentucky also notes interest rates also play a role.

“The expansion decision is really a tradeoff,” Burdine says, in the recent issue of Cattle Market Notes Weekly. “A cow-calf producer choosing to expand makes a short-term investment (heifer retention or breeding stock purchase) in hopes of seeing higher profit levels in the future. Any time a short-term / long-term discussion is had, interest rates and inflation are likely to enter the conversation.”

When it comes to interest rates, Burdine explains the obvious impact is the interest cost or opportunity cost associated with buying or retaining more females. Less obvious, he says, is the time value of money.

“Money in the present is always preferred over money in the future and interest rates largely determine how significant that preference is,” Burdine says. “When a producer retains a heifer for replacement purposes, he/she forgoes her value as a calf (present) in order to see increased revenues from the sale of her calves after she enters the herd (future). The preference for money now, from the sale of the weaned heifer, is greater when interest rates are higher. At the same time, the real value of those future calves is lower due to higher interest rates. An economist might say those future returns are ‘more heavily discounted’ in a higher interest rate environment. This combination results in less desire to hold heifers for development purposes, and I think we are seeing some impact from this today.”

Cattle futures closed mostly higher Tuesday, supported by positive fundamentals.

Live Cattle futures closed average of 58¢ higher, except for an average of 30¢ lower in the front two contracts.

Feeder Cattle futures closed an average of $2.22 higher, except for 35¢ higher in spot Mar.

Negotiated cash fed cattle trade ranged from a standstill in the South to mostly inactive on light demand in the North, with too few transactions to trend, through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $180/cwt. in the Southern Plains, $181 in Nebraska and $180 in the western Corn Belt. Dressed delivered prices were mostly $287 in Nebraska and $285 in the western Corn Belt.

Choice boxed beef cutout value was 28¢ higher Tuesday afternoon at $297.37/cwt. Select was 42¢ higher at $287.82/cwt.

Apparent short covering helped lift grain futures Tuesday.

Corn futures closed 1¢ to 4¢ higher.

KC HRW Wheat futures closed 14¢ to 19¢ higher through Dec ’25.

Soybean futures closed 7¢ to 10¢ higher.

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Major U.S. financial indices closed lower Tuesday, led by tech stocks.

The Dow Jones Industrial Average closed 64 points lower.

The S&P 500 closed 30 points lower. The NASDAQ was down 144 points.

CME WTI Crude Oil futures closed $1.01 to $1.42 lower through the front six contracts.

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Plenty of folks will be watching for Friday’s Monthly Cattle on Feed report to see how much placements decline year over year. Although placement are widely anticipated to be less, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University says the Feb. 1 on-feed inventory likely will be higher again.

“Feedlots are quite full in many cases and are dealing with muddy conditions and lost performance due to winter weather in December and January,” Peel says in his weekly market comments. “The sluggish pen conditions resulted in sluggish cash fed market conditions with fed prices dropping back about a $1.00/cwt. this past week to $180/cwt. As feedlots clean up pens, on-feed numbers are expected to tighten up in the coming months as the reality of limited feeder supplies becomes apparent.” 

Peel points out estimated feeder supplies were 4.2% less year over year at the beginning of January, the least since 1972. 

So far this year, Peel notes steer and heifer slaughter is 3.3% less year over year and beef cow slaughter 15.7% less. 

“Steer and heifer carcass weights have dropped sharply in recent weeks as a result of earlier winter weather. Current steer carcass weights are close to year-ago levels at 909 pounds, having dropped from highs of 942 pounds in late December,” Peel says. “Although carcass weights dropped slightly on an annual basis in 2023, there is a good chance that carcass weights will increase modestly this year with cheaper cost of gain in feedlots and both cattle feeders and packers having incentives to find pounds of beef wherever they can in the face of decreasing cattle supplies.”

Beef production is projected to decrease roughly 5% year over in 2024, according to Peel. Beef production was 4.7% less year over year in 2023.

Futures and equity markets were closed Monday in observance of President’s Day.

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $2 lower in the Southern Plains at $180/cwt., unevenly steady in Nebraska at $181 and steady to $2 lower in the western Corn Belt at $180. Dressed delivered prices were unevenly steady in Nebraska at mostly $287 and steady in the western Corn Belt at $285.

The five-area direct weighted average FOB live fed steer price last week was 80¢ lower at $180.35. The weighted average dressed delivered fed steer price was 76¢ lower at $286.61.

Choice boxed beef cutout value was 89¢ higher Monday afternoon at $297.09/cwt. Select was 74¢ higher at $287.40/cwt.

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Recent release of the 2022 Census of Agriculture indicates further reduction of operations and increasing consolidation over time.

There were 1.9 million farms in 2022. That was 208,916 fewer than in 2012 (-9.9%) and 228,495 fewer than in 2002 (-10.7%). The average farm size in 2022 was 463 acres, which was 29 acres more than in 2012 and 21 acres more than in 2002.

Of the total farms, 622,162 had beef cows, which was 105,744 fewer than in 2012 (-14.5%) and 174,274 fewer than in 2002 (-21.9%). Spun differently, 32.7% of all farms in 2022 had some beef cows, compared to 34.5% in 2012 and 37.4% in 2002.

In terms of herd size, 54.7% of operations had 19 head or fewer (33.6% with 1-9 head), while 14.6% of operations had herd sizes of 200 head or more (2.5% of operations with 1,000 head or more).

There were 880.1 million acres of land in farms in 2022. That was 34.4 million less than in 2012 (-3.8%) and 58.2 million less than in 2002 (-6.2%). Farms consisting of 1,000 or more acres comprised 8.4% of all farms in 2022, compared to 12.3% of farms with 1-9 acres, 29.8% with 10-49 acres and 27.9% with 50-179 acres.

Cattle futures rallied higher Friday helped along by recently stronger wholesale beef values.

Live Cattle futures closed average of $1.11 higher (65¢ to $1.95 higher).

Feeder Cattle futures closed an average of $1.67 higher (50¢ higher at the back to $3.32 higher at the front).

Negotiated cash fed cattle trade ranged from mostly inactive on light demand to slow on light demand through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

Last week, FOB live prices were $2 lower in the Southern Plains at $180/cwt., steady to $2.50 lower in Nebraska at $180 and steady in the western Corn Belt at $180-$182. Dressed delivered prices were unevenly steady in Nebraska at mostly $287 and steady in the western Corn Belt at $285.

Choice boxed beef cutout value was 90¢ higher Friday afternoon at $296.20/cwt. Select was $1.33 lower at $286.66/cwt.

Total estimated cattle slaughter last week of 608,000 head was 14,000 head fewer than the previous week and 17,000 head fewer than the same week last year. Total year-to-date estimated cattle slaughter of 4.2. million head was 246,000 head fewer (-5.6%). Year-to-date estimated beef production of 3.5 billion pounds was 153.5 million pounds less (-4.2%).

Corn futures closed mostly 1¢ to 2¢ higher.

KC HRW Wheat futures closed 8¢ to 11¢ lower.

Soybean futures closed mostly 5¢ to 10¢ higher.

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Major U.S. financial indices closed lower on Friday with another report indicating stubborn inflation.

The Producer Price Index for final demand increased 0.3% in January, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. That was more than expected.

The Dow Jones Industrial Average closed 145 points lower. The S&P 500 closed 24 points lower. The NASDAQ was down 130 points.

West Texas Intermediate Crude Oil futures (CME) closed 54¢ to $1.16 higher through the front six contracts.

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Depending on your abacus, the USDA Agricultural Projections to 2033 released last week are plumb optimistic when it comes to the timing and degree of U.S. beef cow herd growth.

USDA pegs the Jan. 1, 2025 beef cow inventory at 28.82 million head, which would be 600,000 head more than Jan. 1 this year. USDA projects the beef cow herd growing to a peak of 31.68 million head in 2031, which would be 3.5 million head more than where this year began.

“Beef production is projected to increase during much of the forecast period as assumptions of normal weather and improved pastures, coupled with strong cattle prices, sets the stage for herd rebuilding,” according to the report. “Beef production is expected to decline in 2024 reflecting tighter cattle supplies leading into the projection period. However, higher expected cattle prices in 2024 and an expected return to normal pasture conditions will likely incentivize heifer retention, after which modest herd growth is expected through the end of the projection period.”

USDA projects the annual feeder steer price (750-800 lbs., Oklahoma City) to peak this year at $253.75/cwt. and at $246.34 next year. After that prices are projected to decline to a low of $159.78 in 2030 before increasing again.

USDA forecasts the weighted average annual five-area direct fed steer price at $185.00 this year and $180.60 next year before declining to a low of $128.78 in 2030.

“Corn prices are projected to decline from the elevated levels in 2022/23 and 2023/24, and corn planted acreage is projected to fall from 94.9 million acres in 2023/24 to 91 million acres in 2024/25, according to the report. Prices start at $4.50 per bushel in 2024/25 and then level off at $4.30 per bushel the remainder of the projection period.”

U.S. real GDP growth is projected at an annual average of 1.9% during the projection period from 2024–33.

Live Cattle futures closed higher Thursday, supported by firmer wholesale beef values and more reprieve in Corn futures.

Live Cattle futures closed average of 64¢ higher (17¢ higher at the back to $1.60 higher toward the front).

Feeder Cattle futures closed an average of 57¢ lower, except for an average of 75¢ higher in the front two contracts.

Negotiated cash fed cattle trade ranged from moderate on moderate demand in the North to mostly inactive on light demand in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service.

So far this week, FOB live prices are $2 lower in the Southern Plains at $180/cwt., steady to $2.50 lower in Nebraska at $180 and mainly steady in the western Corn Belt at $180-$181. Dressed delivered prices are unevenly steady in Nebraska at mostly $287 and steady in the western Corn Belt at $285 on a light test.

Choice boxed beef cutout value was $1.30 higher Thursday afternoon at $295.30/cwt. Select was $3.97 higher at $287.99/cwt.

Grain and Soybean futures continued to plumb for new lows Thursday as the lack of demand faces abundant supplies.

Corn futures closed mostly 5¢ to 7¢ lower.

KC HRW Wheat futures closed 11¢ to 14¢ lower.

Soybean futures closed mostly 10¢ to 14¢ lower through Sep ’25.

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Major U.S. financial indices continued to claw back early-week losses on Thursday, led by tech stock and supported by receding bond yields.

Advance estimates of U.S. retail and food services sales for January this year were 0.6% higher year over year but 0.8% lower month to month, according to the U.S. Census Bureau. That was much weaker than the trade expected.

The Dow Jones Industrial Average closed 348 points higher. The S&P 500 closed 29 points higher. The NASDAQ was up 47 points.

West Texas Intermediate Crude Oil futures (CME) closed 85¢ to $1.39 higher through the front six contracts.

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USDA projects commercial beef production this year to be 3% less year over year at 26.19 billion pounds.

“In the first part of the year, steer and heifer slaughter will reflect higher levels of cattle in feedlots but as the year progresses, marketings will decline as feedlot numbers diminish,” according to Shayle Shagam, livestock analyst with the World Agricultural Outlook Board. He provided the Outlook for Livestock and Poultry in 2024 at the Agricultural Outlook Forum taking place in Arlington, Va.

As for non-fed slaughter, Shagam says beef and dairy cow slaughter has been lower year over year so far in 2024 but may reflect the effects of winter weather on mid-January slaughter schedules.

“Nonetheless, with a smaller cow base, cow slaughter is expected to decline during the year, but reductions may also reflect improved forage conditions and strong calf prices which would support retention of cows as a precursor to any herd rebuilding,” Shagam says.

As mentioned in yesterday’s Cattle Current, USDA projects the average prices for a 750-800 lb. feeder steer selling at Oklahoma City record high at $248.50/cwt. USDA pegs the annual five-area direct average fed steer price for this year at $180/cwt.

Overbought conditions, seasonally lower wholesale beef values, early cash fed cattle sales at lower money and the previous day’s surprisingly strong Consumer Price Index all weighed on Cattle futures Wednesday.

Feeder Cattle futures closed an average of $2.43 lower.

Live Cattle futures closed an average of $1.57 lower.

Negotiated cash fed cattle trade ranged from moderate on moderate demand to active on good demand in the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service. FOB live prices were $2 lower at $180/cwt.

Elsewhere, trade was slow on light to moderate demand with too few transactions to trend. Last week, FOB live prices were $180-$182.50 in Nebraska and $180-$182 in the western Corn Belt. Dressed delivered prices were $285-$289 in Nebraska and $285 in the western Corn Belt.

Choice boxed beef cutout value was $1.73 higher Wednesday afternoon at $294.00/cwt. Select was $1.28 lower at $284.02/cwt.

Queasiness over the release of the latest USDA projections helped take grain and Soybean futures lower.

Corn futures closed mostly 5¢ to 6¢ lower.

KC HRW Wheat futures closed mostly 7¢ to 9¢ lower.

Soybean futures closed 9¢ to 15¢ lower through Jly ’25 and then mostly 3¢ to 4¢ lower.

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Major U.S. financial indices rebounded Wednesday from the previous day’s sharp losses.

The Dow Jones Industrial Average closed 151 points higher. The S&P 500 closed 47 points higher. The NASDAQ was up 203 points.

West Texas Intermediate Crude Oil futures (CME) closed 98¢ to $1.23 lower through the front six contracts.

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Compared to prior-month projections, USDA’s Economic Research Service (ERS) increased expected feeder steer prices (750-800 lbs., Oklahoma City) for this year, in the February Livestock, Dairy and Poultry Outlook.

Based on current prices and lower anticipate feed prices, ERS increased the feeder steer price $9 in the first quarter to $234/cwt., $6 in the second quarter to $242, $5 in the third quarter to $255 and $5 in the fourth quarter to $256. ERS increased the expected annual average price for this year $6.25 to $248.50.

“Forage availability, as well as historically high prices for calves and cull cows, likely discouraged producers from retaining females in 2023,” ERS analysts say. “The culling rate of beef cows in 2023 was over 12% of the beef cow inventory on Jan. 1, 2023, the third highest rate behind 2011 and 2022.”

As reported recently in Cattle Current, ERS also increased projected five-area direct fed steer prices slightly for this year in the February World Agricultural Supply and Demand Estimates. Prices were projected at $176 in the first quarter, $180 in the second and third quarters and $184 in the fourth quarter. ERS increased the forecast annual five-area direct average fed steer price for this year by $2 to $180/cwt. Analysts say prices were raised on expected strength in first-half demand for fed cattle in the face of tightening feedlot numbers.

Cattle futures softened Tuesday with pressure from outside markets and likely profit taking.

Feeder Cattle futures closed an average of $1.07 lower.

Live Cattle futures closed an average of 73¢ lower.

Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $182/cwt. in the Southern Plains, $180-$182.50 in Nebraska and $180-$182 in the western Corn Belt. Dressed delivered prices were $285-$289 in Nebraska and $285 in the western Corn Belt.

Choice boxed beef cutout value was $1.81 lower Tuesday afternoon at $292.27/cwt. Select was $1.72 lower at $285.30/cwt.

Corn futures closed mostly fractionally higher to 1¢ higher.

KC HRW Wheat futures closed 2¢ to 4¢ lower.

Soybean futures closed 3¢ to 6¢ lower.

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Major U.S. financial indices closed sharply Tuesday, under pressure from a hotter inflation reading than expected, prompting concerns the Fed would take longer to cut interest rates.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in January on a seasonally adjusted basis, after rising 0.2% in December, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.1% before seasonal adjustment.

The Dow Jones Industrial Average closed 524 points lower. The S&P 500 closed 68 points lower. The NASDAQ was down 286 points.

West Texas Intermediate Crude Oil futures (CME) closed 32¢ to 95¢ higher through the front six contracts.

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Domestic and global economic growth continue to firm, according to the recent Interim Economic Outlook from the Organization for Economic Cooperation and Development (OECD).

OECD projects U.S. economic growth this year to be 2.1% and then 1.7% in 2025, helped by consumers continuing to spend savings built up during the COVID and easier financial conditions.

The Outlook projects global GDP growth of 2.9% in 2024 and 3.0% in 2025. Asia is expected to continue to account for the bulk of global growth in 2024-25, as it did in 2023. With said, OECD analysts note China’s economy is projected to grow at 4.7% this year and 4.2% in 2025 – the slowest rate in any of the 25 years before COVID, reflecting weak consumer demand and structural strains in property markets.

“The global economy has shown real resilience amid the high inflation of the past two years and the necessary monetary policy tightening. Growth has held up, and we expect inflation to be back to central bank targets by the end of 2025 in most G20 economies,” according to Mathias Cormann.  OECD Secretary-General. “Monetary policy needs to remain prudent, though central banks could start to lower interest rates this year, provided that inflation continues to ease.”

The OECD expects inflation to continue easing gradually, as cost pressures moderate. Headline inflation in G20 countries is expected to decline from 6.6% in 2024 to 3.8% in 2025. Core inflation in the G20 advanced economies is projected to fall back to 2.5% in 2024 and 2.1% in 2025.