Cattle futures were mostly higher Tuesday supported by stronger early-week wholesale beef values and perhaps some lift on news that Cargill’s packing facility at Ft. Morgan, Colo., will resume operations.
Toward the close, Live Cattle futures were an average of 72¢ higher. Feeder Cattle futures were an average of 80¢ higher, except for 27¢ lower in the front contract.
Negotiated cash fed cattle trade ranged from limited on light demand in Nebraska to mostly inactive on light demand in the western Corn Belt through Tuesday afternoon, according to the Agricultural Marketing Service.
Although too few transactions to trend, there were some early dressed trades in Nebraska at $359/cwt.
Last week, FOB live prices were $228 in Kansas, $225-$230 in Nebraska and $228-$230 in the western Corn Belt. Dressed delivered prices were $362-$368.
Choice boxed beef cutout value was $11.58 higher Tuesday afternoon at $391.15/cwt. Select was $2.03 higher at $366.29.
Grain and Soybean futures were mixed to lower Tuesday with likely profit taking.
Toward the close and through the front four contracts, Corn futures were 1¢ to 2¢ lower. Soybean futures were 1¢ lower to 1¢ higher. Kansas City HRW Wheat were 10¢ to 16¢ lower.
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Major U.S. financial indices closed lower again Tuesday, pressured by higher crude oil prices and treasury yield rates fueled by inflation concerns.
The Dow Jones Industrial Average closed 116 points lower. The S&P 500 closed 53 points lower. The NASDAQ was down 355 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 33¢ to 44¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) slashed expected feeder steer prices for this year and next in the August Livestock, Dairy and Poultry Outlook.
Compared to the previous month, based on recent price weakness, ERS reduced projected prices by $17/cwt. in the third and fourth quarters of this year to $363 and $365, respectively. The annual 2026 projected price average declined $8.50 to $367.26.
Prices are basis a Medium and Large #1 feeder steer weighing 750-800 lbs. and selling at Oklahoma City.
Factoring in weaker price momentum, additional feeder calf imports, due to reopening the border with Mexico, and recognizing a smaller calf crop this year, ERS reduced forecast prices $8 in the first quarter of next year to $370 and $10 in the second quarter to $375. The 2027 annual price was $8.25 lower at $373.75.
As mentioned in Cattle Current last week, the 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.