Negotiated cash fed cattle trade was mostly inactive on light demand in the Southern Plains through Tuesday afternoon, according to the Agricultural Marketing Service. Elsewhere, trade was at a standstill.
Pressure in Corn futures helped boost Cattle futures Tuesday, especially Feeder Cattle.
Live Cattle futures closed an average of 32¢ higher (15¢ to 87¢ higher) except for an average of 25¢ lower in two contracts.
Feeder Cattle futures closed an average of $1.32 higher.
Choice boxed beef cutout value was $1.91 lower Tuesday afternoon at $234.29/cwt. Select was 12¢ higher at $220.73.
Corn futures closed 7¢ to 8¢ lower through the front three contracts and then mostly 1¢ to 2¢ lower. Estimated U.S. and world ending stocks were more than the average of expectations.
Soybean futures closed mostly 10¢ to 14¢ higher through Jan ‘22 and then mostly 8¢ to 9¢ higher.
Major U.S. financial indices closed narrowly mixed Tuesday.
The Dow Jones Industrial Average closed 9 points lower. The S&P 500 closed 4 points lower. The NASDAQ was up 20 points.
USDA’s Economic Research Service (ERS) increased projected beef production for 2021 and lowered expected fed steer prices slightly, in the latest monthly World Agricultural Supply and Demand Estimates (WASDE).
Beef production was estimated at 27.54 billion lbs., which was 350 million lbs. more (+1.29%) than the previous month. That would be 388 million lbs. more (+1.43%) than last year. Estimated beef production increased mostly on higher cattle slaughter and heavier than expected early-year cattle weights.
The average five-area direct fed steer price was projected 50¢ lower for the annual average at $115/cwt. Average prices are forecast at $113 in the first and second quarters, $114 in the third quarter and $119 in the fourth quarter.
Total red meat and poultry production for this year was projected at 107.60 billion lbs., which was 500 million lbs. more (+0.47%) than the previous month. That would be 1.08 billion lbs. more (+1.01%) than last year.
Among other WASDE highlights:
Corn—The outlook is for higher exports and lower ending stocks, which were projected 50 million bu. less than the previous month. The expected 2020-21 season-average corn price received by producers was raised 10¢ to $4.30/bu.
Soybeans—The outlook is for increased exports and lower ending stocks. The U.S. season-average soybean price for 2020-21 is forecast at $11.15/bu., unchanged from the previous month. Soybean meal price is forecast $10 more per short ton at $400. The soybean oil price forecast was raised 1.5¢ to 40.0¢/lb.
Wheat—The supply and demand outlook for 2020-21 U.S. was largely unchanged. The season-average farm price was raised 15¢/bu. to $5.00, based on NASS prices reported to date and expectations for futures and cash prices for the remainder of the marketing year.