Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.
Feeder Cattle futures closed mixed across a broad range Tuesday, helped along by a day of respite from rising new-crop Corn futures. Live Cattle softened as traders await cash direction.
Live Cattle futures closed an average of 39¢ lower, except for 15¢ higher in the back contract.
Feeder Cattle futures closed mixed, from an average of 51¢ higher in five contracts (10¢ to $1.45 higher) to an average of 57¢ lower (7¢ to $1.40 lower).
Choice boxed beef cutout value was $5.79 higher at $290.99/cwt. Select was $5.18 higher at $279.53
Corn futures closed mostly 3¢ to 7¢ lower, expect for 15¢ higher in spot May and 2¢ higher in back contracts.
Soybean futures closed 18¢ to 19¢ lower through the front six contracts and then 6¢ to 16¢ lower.
Major U.S. financial indices closed narrowly mixed Tuesday.
Positive economic news included The Conference Board Consumer Confidence Index®rising 12 points month to month to 121.7 in April.
“Consumer confidence has rebounded sharply over the last two months and is now at its highest level since February 2020,” says Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
The Dow Jones Industrial Average closed 3 points higher. The S&P 500 closed fractionally lower. The NASDAQ down 48 points.
Snugger beef supplies in cold storage are supporting the rise in wholesale prices.
Total pounds of beef in freezers Mar. 31 were 5.6% less than the previous month and 3.7% less than the previous year, according to the latest USDA Cold Storage report.
Specifically, analysts with the Livestock Marketing Information Center (LMIC) point out total beef in cold storage declined by 483.7 million lbs. month to month.
“Both boneless beef and beef cuts fell 3.4% and 8.5%, respectively, from last year to 451.3 and 32.3 million lbs.,” say LMIC analysts, in the latest Livestock Monitor. They note boxed beef cutout value rose $66.69/cwt. (+32.3%) from the start of the year to mid-April, when it was $274.42/cwt.
Total pork in cold storage was 6.5% less than the previous month and 26.8% less year over year. LMIC analysts add the 451.8 million lbs. of pork in cold storage was 26.0% less than the five-year average.
Total red meat in cold storage of 969.3 million lbs. was 62.3 million lbs. less (-6.0%) than the previous month and 192.7 million lbs. less year over year (-16.6%).
Total frozen poultry supplies in cold storage of 1.1 billion lbs. were 1.2 million lbs. more than the previous month (+0.1%), but 217.6 million lbs. less (-16.6%) year over year.