Feeder Cattle futures led Live Cattle higher on Tuesday.
Toward the close, Feeder Cattle futures were an average of $2.15 higher. Live Cattle futures were an average of 30¢ higher.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $230/cwt. in Kansas and $225-$230 in Nebraska and the western Corn Belt. Dressed delivered prices were mostly $355 Nebraska and $350-$355 in the western Corn Belt on a light test. There was no reported established trade in the Texas Panhandle.
Choice boxed beef cutout value was 58¢ lower Tuesday afternoon at $358.88/cwt. Select was $1.80 higher at $349.10.
Grain and Soybean futures were lower Tuesday.
Toward the close, Corn futures were 3¢ lower. KC HRW Wheat futures were 6¢ to 7¢ lower. Soybean futures were 8¢ to 9¢ lower.
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Major U.S. financial indices closed mixed on Tuesday, pressured by a sluggish national employment outlook.
Total nonfarm payroll employment changed little in November (+64,000) and has shown little net change since April, according to the U.S. Bureau of Labor Statistics. The unemployment rate was also little changed from the previous report in September at 4.6%.
Average hourly earnings for all employees on private nonfarm payrolls edged 5¢ higher in November to $36.86. Over the past 12 months, average hourly earnings have increased by 3.5%
The Dow Jones Industrial Average closed 302 points lower. The S&P 500 closed 16 points lower, but the NASDAQ was up 54 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.50 to $1.70 lower through the front six contracts.
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Current cattle numbers suggest beef production will continue losing ground for the next couple of years, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.
“Decreased beef production is the result of smaller U.S. calf crops for seven consecutive years since 2018,” Peel explains in his weekly market comments. “The feeder cattle supply continues to tighten as a result, leading to lower feedlot production, decreased cattle slaughter and lower beef production.”
Decreased beef cow culling the last three years may enable the national cow herd to stabilize in 2026, Peel says. However, he adds, “There is currently no indication of significant heifer retention, and it will not be possible to hold the herd inventory stable, and certainly not to rebuild inventories, without additional heifer retention. Therefore, beef production is expected continue decreasing for the next couple years, likely leading to even higher beef prices.”