Cattle futures faded pressure early in Tuesday’s session to closer higher.
Live Cattle futures closed an average of 70¢ higher (35¢ to $1.02 higher), except for 10¢ lower in the back contract.
Feeder Cattle futures closed an average of $1.12 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $185/cwt. in the Texas Panhandle, $186 in Kansas, $189-$192 in Nebraska and $190 in the western Corn Belt. Dressed prices were $300 in Nebraska and $298-$300 in the western Corn Belt.
Choice boxed beef cutout value was 56¢ higher Tuesday afternoon at $337.99/cwt. Select was 76¢ lower at $309.38/cwt.
Deteriorating crop conditions helped boosted Corn and Soybean futures Tuesday.
Corn futures closed mostly 1¢ to 2¢ higher.
Soybean futures closed mostly 18¢ to 30¢ higher.
KC HRW Wheat closed 2¢ to 4¢ lower through May ‘24, and then 1¢ to 3¢ higher.
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Major U.S. financial indices closed higher again Tuesday with further indications of easing inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in May on a seasonally
adjusted basis, after increasing 0.4 percent in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 4.0% before seasonal adjustment.
The Dow Jones Industrial Average closed 145 points higher. The S&P 500 closed 30 points higher. The NASDAQ was up 111 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.26 to $2.30 higher through the front six contracts, supported by easing inflation and China’s cut in short-term interest rates, both bullish for demand.
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Cutter cow prices (90% lean) have been more than $90/cwt. on a live basis the past three weeks, the first time since 2015, according to the Livestock Marketing Information Center (LMIC).
“This year started with a price for cutter cows in the mid-$60s and has steadily climbed into midyear,” say LMIC analysts, in the latest Livestock Monitor.
Price spreads serve as another example of how steady demand relative to declining numbers are impacting value.
“The spread in price between cutter cows and other grades of live-priced cows has shrunken considerably this year,” according to LMIC analysts. “Last year, the average spread between premium whites and cutter cows was just over $10/cwt. This year, the average is just under $4. The same is true for breakers (75% lean) and boners (85% lean). Breaker volumes are up 8% year to date, and the premium to cutters has averaged $6.77 versus the 2022 average of $10.61 per cwt. Boner graded cow volumes are up almost 400% from last year at this time, and the premium to cutters has averaged $4.84 per cwt this year. In 2022, the average was $7.01 per cwt.”