Cattle futures closed higher Tuesday as traders retrenched with expectations of cash fed cattle prices at least mirroring last week’s hefty gains.
Toward the close, Live cattle futures were an average of $2.25 higher. Feeder Cattle futures were an average of $2.79 higher.
Negotiated cash fed cattle trade was inactive on moderate demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $228-$230/cwt. in the Texas Panhandle, mostly $230 in Kansas, $240-$241 in Nebraska and mostly $240 in the western Corn Belt. Dressed delivered prices were $380.
Choice boxed beef cutout value was 65¢ higher Tuesday afternoon at $377.72. Select was $2.00 lower at $362.58.
Apparent continued short covering helped Corn futures firm Tuesday while improved crop conditions weighed on Soybean futures (see below).
Toward the close and through away Jly contracts, Corn futures were mostly 1¢ higher. Kansas City Wheat futures were unchanged to fractionally mixed. Soybean futures were 2¢ to 6¢ lower.
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Although the latest inflation data was in line with expectations, its stickiness helped weigh on major U.S. financial indices Tuesday.
The Consumer Price Index for All Urban Consumers increased 0.3% on a seasonally adjusted basis in June, after rising 0.1% in May, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 2.7% before seasonal adjustment.
The Dow Jones Industrial Average closed 436 points lower. The S&P 500 closed 24 points lower. The NASDAQ was up 37 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 25¢ to 31¢ lower through the front six contracts.
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Pasture and range conditions continue improved from the same time last year, according to the latest USDA Crop Progress report for the week ending July 13.
Nationwide, 46% of range and pasture was in Good (33%) and Excellent (13%) condition, compared to 41% a year ago. On the other end of the scale, 28% was rated as Poor (17%) or Very Poor (11%) compared to 29% last year.
States with 35% or more of pasture and range ranked as Poor or Very Poor included Arizona (80%), Montana (65%), Nebraska (37%), Nevada (90%), New Mexico (39%) and Oregon (38%).
Row crop progress and condition also continued on a positive plane.
Corn — 74% in Good (57%) and Excellent (17%) condition, which was 6% more year over year. Likewise, 4% less was in Poor (4%) or Very Poor (1%) condition.
Soybeans — 70% in Good (58%) and Excellent (12%) condition, which was 2% more year over year and 4% more week to week. On the other end of the scale, 5% was in Poor (4%) or Very Poor (1%) condition compared to 8% last year.
Winter wheat — harvest was 63% complete, compared to 70% a year ago and 64% for the five-year average.