Feeder Cattle futures closed an average of $1.86 higher ($1.17 to $2.62 higher), helped along by weaker Corn futures and cash strength.
Live Cattle futures closed an average of 57¢ higher, supported by cash strength and rising wholesale beef values.
Choice boxed beef cutout value was $2.19 higher Tuesday afternoon at $295.10/cwt. Select was $3.64 higher at $282.04/cwt.
Negotiated cash fed cattle trade was at a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $170/cwt. in the Southern Plains and $174-$177 in Nebraska and the western Corn Belt. Dressed prices were $275-$280.
Grain and Soybean futures seemed to bow to weather and outside markets more than the monthly World Agricultural Supply and Demand Estimates (see below).
Corn futures closed mostly 1¢ to 3¢ lower.
KC HRW Wheat closed mostly 8¢ to 10¢ lower.
Soybean futures closed mostly 2¢ to 4¢ higher.
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Major U.S. financial indices closed little changed Tuesday as investors awaited key inflation data Wednesday.
The Dow Jones Industrial Average closed 98 points higher. The S&P 500 closed fractionally lower. The NASDAQ was down 52 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.56 to $1.79 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) increased the expected annual five-area direct fed steer price for this year by $2.50 to $164.50/cwt. In the latest World Agricultural Supply and Demand Estimates (WASDE), ERS projected the second-quarter price $6 higher than the previous month at $169. Expected prices for the third and fourth quarters were raised by $3 to $162 and $167, respectively.
That was with beef production forecast 110 million pounds more than the previous month (+0.4%) at 26.77 billion pounds. The total would be 1.5 billion pounds less (-5.3%) than last year.
Corn — This month’s 2022/23 U.S. corn outlook was for reduced imports and food, seed, and industrial (FSI) use, with unchanged ending stocks. With supply and use falling by the same amount, ending stocks were unchanged at 1.34 billion bushels.
The season-average farm price was unchanged at $6.60 per bushel.
Soybeans — U.S. soybean supply and use forecasts for 2022/23 were unchanged relative to last month. Soybean and soybean meal prices also were unchanged at $14.30 per bushel and $465 per short ton, respectively. The soybean oil price was projected 2¢ lower at 64¢ cents per pound.
Wheat — The outlook for 2022/23 U.S. wheat was for slightly higher supplies, reduced domestic use, unchanged exports, and increased ending stocks. Projected 2022/23 ending stocks were raised 30 million bushels to 598 million, still 14% below last year.
The 2022/23 season-average farm price was forecast 10¢ per bushel lower at $8.90, based on NASS prices reported to date and expectations for cash prices for the remainder of 2022/23.