Cattle futures were higher Tuesday, helped along by stronger wholesale beef values, another day of lower Corn futures and follow-through support tied to the recent Cattle on Feed report.
Toward the close on Tuesday, Live Cattle futures were an average of 82¢ higher. Feeder Cattle futures were an average of $1.98 higher.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $199/cwt. in the Southern Plains, $199-$200 in Nebraska and $199-$201 in the western Corn Belt. Dressed delivered prices were $315.
Choice boxed beef cutout value was 59¢ higher Tuesday afternoon at $314.32/cwt. Select was 16¢ higher at $304.13.
Grain and Soybean futures eased lower again Tuesday with likely month-end position squaring and wariness about any initial acreage projections USDA shares during this week’s Agricultural Outlook Forum.
Toward the close and through Sep ’25 contracts, Corn futures were 1¢ to 2¢ lower. Kansas City Wheat futures were 2¢ to 3¢ lower. Soybean futures were 1¢ lower to 2¢ higher.
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Major U.S. financial indices closed mixed again Tuesday, with pressure including another reading of gloomy consumer confidence.
“In February, consumer confidence registered the largest monthly decline since August 2021,” says Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. “This is the third consecutive month on month decline, bringing the Index to the bottom of the range that has prevailed since 2022. Of the five components of the Index, only consumers’ assessment of present business conditions improved, albeit slightly. Views of current labor market conditions weakened. Consumers became pessimistic about future business conditions and less optimistic about future income. Pessimism about future employment prospects worsened and reached a 10-month high.”
The Dow Jones Industrial Average closed 159 points higher. The S&P 500 closed 28 points lower. The NASDAQ was down 260 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were $1.56 to $1.65 lower through the front six contracts.
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Creighton University’s Rural Mainstreet Index (RMI) for February continues to paint a pessimistic picture of the rural economy, declining 4.2 points from January to a reading of 38.0 in February. It was the 17th time in the last 18 months the RMI was below growth neutral.
The RMI is based on a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“The economic outlook for grain farmers remained weak for 2025. However, grain prices have recently improved, but not enough for profitability for many producers,” says Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. “On the other hand, regional livestock producers continue to experience solid prices with only 9.3% of bankers expecting negative cash flow for ranchers in 2025.”
Farmland prices sank below growth neutral for the eighth time in the past nine months, with the region’s farmland price index falling 2 points month to month to 40.0. That was the lowest level since October 2024.
“Elevated interest rates and higher input costs, along with below breakeven prices for a high share of grain farmers in the region, have put downward pressure on ag land prices,” Goss says.
Similarly, Goss notes high input prices, tighter credit conditions and weak farm grain prices are having a negative impact on the purchases of farm equipment. The farm equipment sales index in February was a weak 18.2, marking the 19th consecutive month below growth neutral.
Overall, rural bankers remain pessimistic about economic growth for their area over the next six months.