Cattle futures closed sharply lower Tuesday in response to USDA’s announced plans to begin reopening the Mexican border to cattle imports as soon as next week.
Toward the close, Live cattle futures were an average of $2.50 lower. Feeder Cattle futures were an average of $4.73 lower.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $223-$225/cwt. in the Texas Panhandle, $222-$225 in Kansas, $230-$232 in Nebraska and $230-$233.50 in the western Corn Belt. Dressed delivered prices were mostly $368 in Nebraska and $368-$370 in the western Corn Belt.
Choice boxed beef cutout value was 4¢ higher Tuesday afternoon at $395.60. Select was $4.04 lower at $380.06.
Grain and Soybean futures were mixed Tuesday.
Toward the close and through Mar ‘26 contracts, Corn futures were mostly 3¢ lower, pressured by crop progress and weather. Kansas City Wheat futures were 4¢ higher on short covering. Soybean futures were mostly fractionally higher.
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Major U.S. financial indices closed mixed Tuesday, with apparent rotation from tech stocks to begin the third quarter.
The Dow Jones Industrial Average closed 400 points higher. The S&P 500 closed 6 points lower. The NASDAQ was down 166 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 30¢ to 34¢ higher through the front six contracts.
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Wholesale ground beef prices are on a tear, with the 90% lean trimmings price the last week of June record high at $401.45/cwt., according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.
“Not only have 90% trimmings continued to increase in price, but 50% trimmings have also jumped sharply in recent weeks due to declining fed beef production,” Peel says in his weekly market comments. He points out the price of 50% lean trimming the last week of June was $236.03/cwt., the highest price ever, except for a two-week period during the pandemic in May 2020.
Peel explains mixing 90% and 50% trimmings in a 7:1 ratio produces an 85% lean ground beef product. Using the prices above results in a price of $380.77/cwt. for wholesale 85% lean ground beef, also an all-time record-high price, according to Peel.
“Ground beef prices will remain high for the foreseeable future as cull cow numbers will remain tight while the cattle industry transitions to herd rebuilding,” Peel says.
Listen to more of Peel’s market insights here.