Cattle futures stepped lower Wednesday, pressured in part the continued decline in open interest.
Toward the close, Live Cattle futures were an average of $2.48 lower. Feeder Cattle futures were an average of $4.93 lower.
Negotiated cash fed cattle trade ranged from light on moderate demand in Nebraska to mostly inactive on light demand in Kansas through Wednesday afternoon, according to the Agricultural Marketing Service.
There were some early dressed delivered trades in Nebraska mostly $2 lower at mainly $368/cwt. Last week, FOB live prices were $235.
Elsewhere last week, FOB live prices were $235 and dressed delivered prices in the western Corn Belt were mostly $370.
Choice boxed beef cutout value was 97¢ higher Wednesday afternoon at $372.28/cwt. Select was 1¢ higher at $349.81.
Grain and Soybean futures rallied higher on Wednesday, supported by the August World Agricultural Supply and Demand Estimates (see below), which reduced projected yield for corn and soybeans, while increasing forecast harvested acres for both.
Toward the close and through the front four contracts, Corn futures were 19¢ to 20¢ higher. Soybean futures were 11¢ to 14¢ higher. Kansas City HRW Wheat were 20¢ to 22¢ higher with added premium for disruptions to exports from Ukraine and Russia.
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Major U.S. financial indices closed mixed Wednesday. Support included positive inflation news.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% on a seasonally adjusted basis in July after falling 0.4% percent in June, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.4% before seasonal adjustment.
The Dow Jones Industrial Average closed 21 points lower. The S&P 500 closed 20 points higher. The NASDAQ was up 143 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were narrowly mixed, from 6¢ lower to 20¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) cut projected five-area direct weighted average fed steer prices for the remainder of this year and the first half of next year in the August World Agricultural Supply and Demand Estimates (WASDE).
Compared to the previous month, based on recent weaker than expected demand for fed cattle, forecast prices for this year declined $13 in the third quarter to $255/cwt. and $10 in the fourth quarter to $255 for an annual average of $251.10, which was $5.75 lower.
That was with this year’s beef production estimated to be 321 million pounds less (-0.1%) than last month at 24.97 billion pounds. The total would be 1 billion pounds less (-4%) than the previous year’s total. Beef production was lowered due to a slower rate of steer, heifer and cow slaughter through the end of the year.
For next year, fed steer prices declined $5 to $250 in the first quarter and $255 in the second quarter with an annual average price of $254.
Among other WASDE highlights…
Corn
The 2026/27 U.S. corn outlook was for lower supplies, unchanged domestic use, larger exports, and smaller ending stocks. Corn production was forecast at 16.0 billion bushels, up just 13 million from last month with a 1.2-million acre increase in harvested area that was largely offset by a reduced yield forecast. This would be the second largest U.S. corn harvest on record. The season’s first survey-based corn yield forecast was down 2.3 bushels per acre from last month to 180.7 bushels per acre. Corn beginning stocks were lowered 75 million bushels to 1.9 billion, reflecting raised exports for 2025/26.
Total U.S. corn use for 2026/27 was forecast 75 million bushels higher to 16.3 billion. Exports were raised 75 million bushels to 3.3 billion, reflecting increased global demand and constrained exports for Ukraine. With use rising more than supply, ending stocks were lowered 137 million bushels to 1.7 billion.
The season-average corn price received by producers was raised 10¢ per bushel to $4.50, reflecting tighter ending stocks and expectations for futures and cash prices to date.
Soybeans
U.S. 2026/27 soybean production was projected at 4.5 billion bushels, up 44 million due to a higher harvested area and a slightly lower yield. Harvested area was revised up 1.4 million acres from the July projection to 85.8 million on higher acreage for Missouri, Mississippi, and Minnesota. The first survey-based soybean yield forecast of 52.7 bushels per acre was 0.3 bushels less than last month’s projection and last year’s record yield. Soybean supplies for 2026/27 were projected up 39 million bushels from last month as higher production was partly offset by lower beginning stocks due to a slight increase to crush in the prior marketing year.
Prices were unchanged for 2026/27 with the U.S. season-average soybean farm price forecast at $11.40 per bushel, the soybean meal price at $310 per short ton and the soybean oil price at 70¢ cents per pound.
Wheat
The outlook for 2026/27 U.S. wheat was for lower supplies, unchanged domestic use and exports, and smaller ending stocks. Supplies were reduced on lower production, which was forecast at 1,531 million bushels, down 5 million from last month on decreased harvested area and yield. Projected 2026/27 ending stocks were reduced 5 million bushels to 717 million, down 22% from last year. The projected 2026/27 season-average farm price was raised 20¢ per bushel to $6.20 on a lower stocks-to-use ratio and expectations for futures and cash prices for the remainder of the marketing year.