Cattle futures softened Tuesday as traders awaited weekly cash direction.
Before settlement, Live Cattle futures closed an average of 46¢ lower. Feeder Cattle were an average of 99¢ lower.
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 $185/cwt. in the Southern Plains, $190 in Nebraska and $190-$193 in the western Corn Belt. Dressed delivered prices were $301 in Nebraska and $300-$301 in the western Corn Belt.
Choice boxed beef cutout value was 79¢ higher Tuesday afternoon at $318.21/cwt. Select was 42¢ lower at $300.62/cwt.
Grain and soybean futures were mixed Tuesday, with likely positioning ahead of Wednesday’s World Agricultural Supply and Demand Estimates. Heading toward the close, through away Jly contracts, Corn futures were mostly 3¢ lower. Kansas City Wheat futures were 4¢ to 9¢ higher. Soybean futures were 5¢ to 11¢ lower.
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Major U.S. financial indices settled mixed Tuesday, with the most support from tech stocks.
The Dow Jones Industrial Average closed 120 points lower. The S&P 500 closed 14 points higher. The NASDAQ was up 151 points.
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Expectations for continued historically strong domestic consumer beef demand will pave the way to record-high retail beef prices this summer as production declines, according to Rabobank’s Global Beef Quarterly for the second quarter.
RaboResearch analysts point out the U.S. all-fresh beef retail price in April was record-high at $7.95 per pound and demand was the second highest in the past three decades.
At the same time, those analysts note prices for calves, feeder cattle and fed cattle were record-high or near record-high in March. They expect calf and fed cattle prices to trend sideways through the summer, while feeder cattle prices strengthen.
Globally, Rabobank forecasts declining beef production in the U.S. and Europe will overshadow anticipated production increases in Australia and Brazil.
“The global cattle market is currently moving at two distinct paces,” according to Angus Gidley-Baird, Rabobank Senior Animal Protein Analyst. “North American markets are hovering near record highs amid the contraction in local production, while other regions are experiencing more subdued pricing. Europe finds itself in the middle ground, despite a recent uptick in production. These regional disparities are beginning to influence international trade flows, with the U.S. ramping up its import volumes and major Asian markets maintaining steady import levels.”