Live Cattle future firmed Tuesday while Feeder Cattle futures bounced higher.
Toward the close on Tuesday, Live Cattle futures were mixed, from unchanged to an average of 7¢ lower through the front four contracts to an average of 71¢ higher. Feeder Cattle futures were an average of $2.49 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service. Last week, FOB live prices were $203/cwt. in all regions. Dressed delivered prices were $320-$321.
Choice boxed beef cutout value was 7¢ higher Tuesday afternoon at $315.77/cwt. Select was $2.52 lower at $303.71.
Grain and Soybean futures were higher Tuesday with likely short covering and recent demand improvement.
Toward the close and through Sep ’25 contracts, Corn futures were 4¢ to 7¢ higher. Kansas City Wheat futures were 7¢ to 8¢ higher. Soybean futures were 2¢ to 3¢ higher.
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Major U.S. financial indices edged higher with a late-session surge Tuesday, led by energy stocks.
The Dow Jones Industrial Average closed 10 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 14 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 81¢ to $1.11 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) left the expected annual price for feeder steers unchanged at $273.75/cwt., in the latest monthly Livestock, Dairy and Poultry Outlook. However, they raised the expected first-quarter price for Med. And Lg. #1 steers weighing 750-800 lbs. at Oklahoma City by $4 to $272. Expected prices were unchanged for the second quarter at $272 but declined by $2 in the third and fourth quarters to $273 and $278, respectively.
Although Oklahoma City weighted average cash prices reached a new record in January at $274.45, ERS analysts note they’ve declined about $8 since the announced resumption of feeder cattle imports from Mexico.
“In addition to incorporating the resumption of feeder cattle imports into the forecast, the Cattle report showed more head than previously expected outside feedlots on Jan. 1, albeit still less than a year ago,” ERS analysts say. “The increase in the cow/calf ratio was carried over into 2025 expectations, increasing prospects for a larger-than-previously-expected calf supply in 2025.”