Cattle futures moved higher Tuesday, except for slightly lower in nearby Live Cattle contracts.
Toward the close, Live cattle futures were an average of 50¢ higher, except for an average of 37¢ lower in the front three contracts. Feeder Cattle futures were an average of $1.16 higher.
Negotiated cash fed cattle trade was mostly 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 $230/cwt. in the Texas Panhandle, $230-$231 in Kansas and $240 in the North where dressed delivered prices were $380.
Choice boxed beef cutout value was 43¢ lower Tuesday afternoon at $372.50. Select was $2.11 lower at $347.94.
Grain futures were mixed Tuesday with Corn and Soybeans down on crop ratings and an improved weather outlook.
Toward the close and through away Jly contracts, Corn futures were 4¢ lower. Kansas City Wheat futures were 4¢ to 8¢ higher. Soybean futures were unchanged to 3¢ lower.
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Major U.S. financial indices closed mostly higher Tuesday with positive quarterly corporate earnings across the broader economy, while tech stocks faced pressure.
The Dow Jones Industrial Average closed 179 points higher. The S&P 500 closed 4 points higher. The NASDAQ was down 82 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 37¢ to 84¢ lower through the front six contracts.
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Heifer and beef cow slaughter suggest that the beef cow herd may stabilize and possibly increase fractionally by the end of the year, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He explains heifer slaughter is 3.5% less year over year so far in 2025, while beef cow slaughter is 16.5% less.
“If the current beef cow slaughter rate persists for the remainder of the year, herd culling in 2025 may drop below 9.0%, a level that is certainly consistent with herd rebuilding,” Peel says.
Moreover, Peel points out drought conditions have diminished significantly in much of the eastern two-thirds of the country and have improved during the past two months in Texas, Oklahoma, Kansas, Nebraska and South Dakota. At the same time, he explains drought continues to expand and deepen in the west, Pacific Northwest and across the Northern Plains areas of Montana and North Dakota.
According to the latest U.S. Drought Monitor, 30% of the nation’s cattle were in areas affected by abnormal dryness or drought compared to 39% at the same time last year.
Nationwide, 43% of range and pasture was in Good (32%) and Excellent (11%) condition, compared to 40% a year ago, according to the weekly Crop Progress report for the week ending July 20. 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% of pasture and range ranked as Poor or Very Poor included Arizona (78%), Montana (56%), Nevada (90%), New Mexico (42%) and Oregon (41%).
Peel notes pasture and range conditions in the eight western states (AZ, CA, ID, NV, NM, OR, UT, WA) include 39.9% in Poor and Very Poor conditions, more than last year and the five-year average. He explains the same can be said of Central Plains states (CO, KS, MT, NE, ND, SD, WY) where 27.5% are in Poor or Very Poor condition.
“Although some producers are still being impacted by drought, most of the current drought regions have relatively low beef cow numbers and would not offset increases in other regions,” Peel says.