Cattle futures were lower Tuesday with profit taking and floundering wholesale beef values.
Toward the close, Live Cattle futures were an average of $1.03 lower (7¢ lower toward the back to $2.22 lower at the front), except for 10¢ higher in the back contract.
Feeder Cattle futures were an average of $1.48 lower.
Negotiated cash fed cattle trade was light on moderate to good demand in Kansas through Tuesday afternoon, according to the Agricultural Marketing Service. FOB live prices were steady to $1 higher at $229/cwt.
Trade was limited on light to moderate demand in Nebraska and the western Corn Belt. Although too few to trend, there were some dressed delivered trades in Nebraska at $356 and some FOB live trades in the western Corn Belt at $229. Last week, FOB live prices were $228-$229 in both regions. Dressed delivered prices were $356-$358.
Choice boxed beef cutout value was $7.10 lower Tuesday afternoon at $355.77/cwt. Select was $1.10 lower at $349.59. The Choice-Select spread of $6.18 was the lowest since May of 2024.
Grain futures were higher Tuesday.
Toward the close, through near Jly, KC HRW Wheat futures were 5¢ to 7¢ higher with some likely risk premium added for the Ukraine-Russia war.
Corn futures were fractionally higher.
Soybean futures were 1¢ to 2¢ lower.
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Major U.S. financial indices closed higher Tuesday, led by tech stocks and supported by stronger domestic economic growth than anticipated.
Real gross domestic product (GDP) increased at an annual rate of 4.3% in the third quarter of 2025, according to the initial estimate released by the U.S. Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8%.
The Dow Jones Industrial Average was up 79 points. The S&P 500 closed 31 points higher, and the NASDAQ closed 133 points higher.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 28¢ to 46¢ higher through the front six contracts.
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Projected cattle feeding returns remain significantly positive through the first half of next year, based on the latest Historical and Projected Kansas Feedlot Net Returns. Keep in mind, these estimates are based on cash and assume no price risk management.
For instance, projected net returns for steers range from $500.25 per head this month to $221.79 in May, with a cost of feedlot gain increasing from $93.03/cwt. this month to $102.21 in May. Similarly, projected net returns for heifers range from $547.31 per head this month to $288.23 in May with a feedlot cost of gain growing from $99.77/cwt. this month to $109.66 in May.
Estimated returns decline progressively through May, primarily due to increasing feeder cattle prices. Then net returns turn negative.
Projected returns range from -$243.03 per head in June to -220.82 in August. Feeder cattle prices for those months are $334.84/cwt. and $325.42, respectively. By way of comparison, feeder steer prices before then ranged from $263.23 for cattle finished this month to $286.69 for those that will finish in May. Feedlot cost of gain for steers runs from $102.90/cwt. to $104.13 from June through August.