Feeder Cattle futures were pressured by stronger Corn futures, worries about cold-damaged winter wheat pasture in the Southern Plains and perhaps growing hesitancy related to the ultimate opening of the Mexican border to feeder cattle. Toward the close, they were down an average of $1.63 lower, except for 85¢ higher in spot Jan.
Live Cattle futures were narrowly mixed Tuesday, awaiting the week’s cash trade. They were an average of 35¢ higher, except for unchanged to an average of 6¢ lower in three contracts.
Negotiated cash fed cattle trade was light on light demand in Kansas through Tuesday afternoon, according to the Agricultural Marketing Service. FOB live prices were steady at $201/cwt.
Elsewhere, trade was mostly inactive on very light demand
Last week, FOB live prices were $201 in the Texas Panhandle, $203-$205 in Nebraska and $203-$206 in the western Corn Belt. Dressed delivered prices $322 in Nebraska and $320-$322 in the western Corn Belt.
Choice boxed beef cutout value was $1.11 lower Tuesday afternoon at $332.05/cwt. Select was 11¢ higher at $319.55.
Corn and Soybean futures were higher Tuesday, helped along by the drier South American weather outlook and more optimism regarding tariffs.
Toward the close and through Sep ’25 contracts, Corn futures were 3¢ to 6¢ higher. Soybean futures were 24¢ to 33¢ higher.
Wheat futures gained on prospects of freeze damage in the Southern Plains. Toward the close and through Sep ’25 contracts, Kansas City Wheat futures were 25¢ to 26¢ higher.
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Major U.S. financial indices closed higher Tuesday with investors perceiving a softer tone on tariffs by the new administration.
The Dow Jones Industrial Average closed 537 points higher. The S&P 500 closed 52 points higher. The NASDAQ was up 126 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 40¢ to $1.79 lower through the front six contracts.
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Total U.S. cattle inventory at the bottom of the last cattle cycle was a little more 88 million head and beef production was just over 24 billion pounds, according to Rob Ziegler, Extension specialist the University of Wyoming. He points out the total inventory last year numbered a little more than 87 million head at the beginning of the year and beef production neared 27 billion pounds, so about 3 billion more pounds with 1 million fewer head.
Spun another way, using information compiled the Livestock Marketing Information Center (LMIC), Ziegler explains, in the latest issue of In the Cattle Markets, pounds of beef produced per cow increased by about 5.8 pounds each year from 1999 through 2024.
“Cheap feed grains, favorable weather conditions and strong values helped support carcass weights and overall beef production in 2024,” Ziegler explains. “Additional pounds of beef produced per cow over time is also likely an indication of how technologies improved the efficiency of beef production.”
Bottom line, along with considering this year’s beginning cattle inventory, Ziegler reminds to also keep in mind the impact of total beef production on the market.