Cattle futures continued higher Tuesday, supported by more bullish outside markets and resurgent wholesale beef values.
Toward the close, Live Cattle futures were an average of $2.02 higher. Feeder Cattle futures were an average of $4.46 higher.
Negotiated cash fed cattle trade was inactive on light demand in all cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $238/cwt. in the Southern Plains and mostly $235 in the North. Dressed delivered prices were mostly $372.
Choice boxed beef cutout value was $1.39 higher Tuesday afternoon at $395.49/cwt. Select was $1.92 higher at $392.93.
USDA’s Prospective Plantings and Grain Stocks reports helped lift Grain and Soybean futures on Tuesday.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were 8¢ to 10¢ higher, buoyed by estimated record-low planted acres in USDA’s Prospective Plantings report (see below).
Corn futures were mostly fractionally higher to 2¢ higher on lower stocks than expected, and despite more prospective planted acres than anticipated.
Soybean futures were 12¢ to 13¢ higher through near Nov, supported by fewer planted acres than expected.
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Major U.S. financial indices rebounded Tuesday on various reports suggesting the U.S. war with Iran could be nearing an end.
The Dow Jones Industrial Average closed 1,125 points higher. The S&P 500 closed 184 points higher. The NASDAQ was up 795 points.
Through mid-afternoon West Texas Intermediate Crude Oil futures (CME) were 99¢ to $4.34 lower through the front six contracts.
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USDA estimated 95.3 million corn acres this year in its Prospective Plantings report. That would be 3.45 million acres less (-3.5%) than last year, but more than average trade guesses and 1.45 million acres more than USDA’s initial projections at last month’s Agricultural Outlook Forum.
The projected 84.7 million soybean acres would be 3.46 million acres more (4.3%) than last year, but less than trade estimates ahead of the report.
USDA projected all-wheat acres at 43.78 million acres, which would be 1.55 million fewer acres (-3.4%) than last year and record-low since the data series began in 1919. Winter wheat acres were projected 743,000 acres less (-2.2%) than last year at 32.4 million.
Projected all-hay harvested area of 50.1 million acres would be 556,000 acres (1.1%) more year over year.
USDA also issued its quarterly Grain Stocks report on Tuesday.
Corn stocks in all positions March 1 totaled 9.02 billion bu., up 11% from a year earlier. On-farm stocks of 5.43 billion bu. were 21% more year over year, while off-farm stocks of 3.59 bu. were 2% less.
Soybeans stored in all positions March 1 of 2.10 billion bushels were 10% more than a year earlier. Soybean stocks stored on farms were estimated 3% more at 900 million bu. Off-farm stocks of 1.20 billion bushels were 16% more than last March.
All wheat stored in all positions March 1 totaled 1.30 billion bu., up 5% from a year ago. On-farm stocks were estimated at 298 million bu., down 3% from last March. Off-farm stocks, of 1.00 billion bu. were 8% more than a year earlier.