Cattle futures were strongly higher Tuesday, helped along by early indications of steady to higher cash prices.
Toward the close, Feeder Cattle futures were an average of $1.77 higher. Live Cattle futures were an average of $1.48 higher.
Negotiated cash fed cattle trade was slow on light demand in Kansas through Tuesday afternoon, according to the Agricultural Marketing Service. FOB live prices were steady at $191/cwt.
Elsewhere, trade ranged from mostly inactive to a standstill.
Last week, FOB live prices were $190-$191 in the Texas Panhandle and $190-$192 in the North. Dressed delivered prices were $297.
Choice boxed beef cutout value was $2.41 lower Tuesday afternoon at $311.73/cwt. Select was 31¢ higher at $279.65.
Grain and Soybean futures were higher Tuesday, benefiting from the friendly World Agricultural Supply and Demand Estimates (see below).
Toward the close and through Sep ’25 contracts,
Corn futures were mostly 6¢ to 7¢ higher. Kansas City Wheat futures were mostly 6¢ higher. Soybean futures were 4¢ to 5¢ higher.
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Major U.S. financial indices closed lower on Tuesday as investors await key inflation data this week.
The Dow Jones Industrial Average closed 154 points lower. The S&P 500 closed 17 points lower. The NASDAQ was down 49 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were unchanged to marginally higher through the front six contracts.
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USDA’s Economic Research Service (ERS) left the fourth-quarter five-area direct fed steer price and the annual average 2024 price unchanged at $188/cwt. and $186.68, respectively, in the latest World Agricultural Supply and Demand Estimates (WASDE).
For 2025, compared to the previous month’s projections, ERS left the first-quarter price unchanged at $188 but increased price projections by $2 in the second quarter to $189 and by $6 in the third quarter to $192 with an annual average price $3 higher at $191.
Without any official timeline for resuming live cattle exports from Mexico to the United States — due to New World Screw Worm — ERS analysts emphasize the latest WASDE projections assume export restrictions will remain in place indefinitely.
With the above assumption in mind, ERS reduced projected 2025 beef production, compared to the previous month’s estimate. ERS forecasts beef production next year to be 25.7 billion pounds, which was 615.3 million pounds less than the previous projection. Next year’s total would be 1.4 billion pounds less (-5.1%) than this year’s projected total.