Cattle futures continued to grind higher Wednesday.
Toward the close, Live Cattle futures were an average of 98¢ higher, from 47¢ to $1.95 higher toward the front of the board. Feeder Cattle futures were an average of $1.49 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand in the Texas Panhandle to a standstill elsewhere through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $209-$210/cwt. in the Southern Plains and $213 in the North. Dressed delivered prices were $335-$345.
Choice boxed beef cutout value was $2.32 lower Wednesday afternoon at $339.90/cwt. Select was $3.24 lower at $318.83.
Grain and Soybean futures were mixed Wednesday with the main pressure likely tied to trepidation concerning the U.S. tariffs announced after the session closed.
Toward the close and through Sep ’25 contracts, Corn futures were 2¢ to 4¢ lower. Kansas City Wheat futures were fractionally higher to 2¢ higher. Soybean futures were 3¢ to 5¢ lower.
******************************
Major U.S. financial indices closed higher Wednesday after another volatile session as investors awaited specifics about the new U.S. reciprocal tariffs. Odds and after-hours stock futures suggest markets will view tariff specifics as negative.
The Dow Jones Industrial Average closed 235 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 151 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 66¢ to 99¢ higher through the front six contracts.
******************************
As feeder cattle prices have risen dramatically over the past four years, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University points out the price relationship between lighter and heavier weights has shifted significantly.
Using Oklahoma prices for Medium and Large No. 1 steers, Peel says the price increased 94.6% for calves weighing 475 lbs. from 2022 to 2025. The price for steers weighing 775 lbs. increased 85.2% during the same period.
Delving deeper, Peel says March 2023 feeder prices were 75.3% of the calf price level. By 2025, the feeder price was 71.3% of calf prices. He explains
the price relationships between calves and feeder cattle determine the value of adding additional weight to calves as stockers, while the change in relative prices across weight groups reflects market signals about resource use.
“Current market conditions clearly favor calf production over stocker production. That is to say, grass has more value marketed as weaned calves compared to stocker-based gain,” Peel says in his weekly market comments.
Between enhanced calf production incentives and relatively cheap feedlot cost of gain, Peel notes stocker producers are squeezed with economics generally favoring lighter beginning weights and faster turnover rates.