Cattle futures sold sharply lower Tuesday with technical pressure and worries, more bearish outside markets and worries about the potential impact stemming from the Israel-Iran conflict.
Toward the close, Live cattle futures were an average of $3.51 lower. Feeder Cattle futures were an average of $5.89 lower.
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 $235.00/cwt. in the Southern Plains, $240-$242 in Nebraska and $240-$241 in the western Corn Belt. Dressed delivered prices were $380.
Choice boxed beef cutout value was $4.40 higher Tuesday afternoon at $386.51. Select was $5.07 higher at $372.54.
Grain and Soybean futures were mainly higher Tuesday.
Corn futures were 3¢ to 4¢ higher through new-crop contracts.
Kansas City Wheat futures were 4¢ lower in spot Jly and then 3¢ to 4¢ higher through near Mar.
Soybean futures were mostly 4¢ to 7¢ higher through near Mar.
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Major U.S. financial indices closed lower Tuesday with renewed concerns about the fighting between Israel and Iran.
The Dow Jones Industrial Average closed 299 points lower. The S&P 500 closed 50 points lower. The NASDAQ was down 180 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.74 to $3.12 higher through the front six contracts.
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Meat is having a moment, says Glynn Tonsor, agricultural economist at Kansas State University, pointing to elevated consumer demand and retail prices for red meat protein.
“Per the Meat Demand Monitor (MDM) project (beef and pork checkoff-supported, based at Kansas State University), there is an upward trend in self-declared rates of being a meat consumer (versus Vegan or Vegetarian),” Tonsor explains in the latest issue of In the Cattle Markets. “Further, when it comes to influencing protein purchasing decisions, aspects such as Taste and Freshness have been growing for the typical U.S. resident relative to considerations such as Environmental Impact and Origin/Traceability. This is important to appreciate as stakeholders throughout the industry make production, marketing, and promotion decisions.”
In a related Farm Journal report with Tyne Morgan, Tonsor points to three drivers helping boost demand: increased consumption of red meat as a meal ingredient rather than only a center of the plate entree; physically active younger generations; the number of consumers utilizing new weight- loss drugs that promote more protein consumption.
Plus, Tonsor says consumers today appear more willing to continue paying more for the protein of their choice, rather than consuming less and substituting with cheaper alternatives.
“Ongoing macroeconomic uncertainty, largely tied to trade discussions and possible implications for realized inflation and/or unemployment domestically, presents itself as the largest headwind against an otherwise supportive consumer demand situation,” Tonsor says. “There continue to be MDM based signals that food service demand is softer, likely reflecting household budget-driven behavior change. As the 2025 grilling season gets in full swing, perhaps bolstering retail meat demand, both the macroeconomic situation and the inner-industry developments in response are key to watch.”