Cattle futures softened Tuesday, awaiting the week’s cash direction and perhaps with some profit taking. Before settlement, Live Cattle futures were an average of 49¢ lower. Feeder Cattle were an average of $1.52 lower.
Negotiated cash fed cattle trade was at a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.
Based on final established trade last week, FOB live prices were $186/cwt. in the Southern Plains $195-$198 in Nebraska and $193-$195 in the western Corn Belt. Dressed delivered prices were $305-$306; prices as high as $310.
Choice boxed beef cutout value was 5¢ higher Tuesday afternoon at $320.52/cwt. Select was 61¢ lower at $304.21/cwt.
Grain and soybean futures were mixed Tuesday. Heading into the close, through Jly ’25 contracts, Corn futures were 2¢ to 4¢ higher with likely technical correction. Kansas City Wheat futures were mostly 5¢ to 6¢ lower. Soybean futures closed were 10¢ to 16¢ higher in the front two contracts and then marginally higher through new-crop.
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Major U.S. financial indices were little changed but to the upside Tuesday with continued support from tech stocks.
The Dow Jones Industrial Average closed 56 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 5 points.
Heading into the close, West Texas Intermediate Crude Oil futures on the CME were $1.05 to $1.06 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) left projected feeder steer prices (750-800 lbs., Oklahoma City) unchanged, compared to the previous month, in the latest Livestock, Dairy and Poultry Outlook, except for $1 lower in the second and fourth quarters. Average prices are forecast to be $254/cwt. in the second quarter, and $263 in the third and fourth quarters. The annual average price estimate was reduced 50¢ to $254.96. Next year’s annual average price was projected at $258.50 with the first-quarter price at $247.
“Demand for feeder cattle remains steady, supported in part by improved forage and pasture conditions from a year ago across most of the country,” say ERS analysts. “This has enabled cattle to go on grass rather than into
feedlots, particularly as feedlots are limiting placements in response to high feeder prices.”
As reported in Cattle Current last week, ERS raised the expected average five-area direct fed steer price for most of the remainder of the year, in the June World Agricultural Supply and Demand Estimates.
Compared to the previous month, prices were projected $2 higher in the second quarter at $186/cwt. and $1 higher in the third quarter at $183, but $1 lower in the fourth quarter at $186. The forecast annual price for this year increased 50¢ to $184.01. ERS also raised the expected first-quarter price and the 2025 annual average price by $1 to $186 and $189, respectively.