Cattle futures started the trading week lower with pressure from last week’s weaker fed cattle prices, increasing feed costs, lower wholesale beef values and bearish outside markets.
Live Cattle futures closed an average of $1.49 lower ($1.02 to $2.02 lower).
Feeder Cattle futures closed an average of $2.25 lower ($1.47 to $2.77 lower).
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 $182/cwt. in the Southern Plains, $185-$189 in Nebraska and $186-$188 in the western Corn Belt. Dressed prices were $296 in Nebraska and $294-$300 in the western Corn Belt.
Choice boxed beef cutout value was $3.23 lower Tuesday afternoon at $336.91/cwt. Select was $2.83 lower at $307.93/cwt.
Corn and Soybean futures retained last week’s sharp gains on Tuesday as new-crop conditions erode (see below).
Corn futures closed mostly 2¢ to 6¢ higher.
Soybean futures closed mostly 1¢ to 7¢ higher.
KC HRW Wheat closed mostly narrowly mixed from 4¢ lower to 1¢ higher.
Major U.S. financial indices closed lower Tuesday, led by energy stocks. That was despite positive economic news including more housing starts than expected.
Privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000, according to the U.S. Census Bureau. That was 21.7% more than the revised April estimate of 1,340,000 and 5.7% more than the May 2022 rate of 1,543,000.
The Dow Jones Industrial Average closed 245 points lower. The S&P 500 closed 20 points lower. The NASDAQ was down 22 points.
West Texas Intermediate Crude Oil futures (CME) closed 74¢ to $1.28 lower through the front six contracts.
Nationwide, pasture and range conditions eroded a touch last week, according to the Crop Progress report from USDA’s National Agricultural Statistics Service.
For the week ending June 18, 44% of pasture and range was rated as Good (35%) or Excellent (9%), which was 1% less than the previous week but 11% more than a year earlier. 21% was rated as Poor (14%) or Very Poor (7%), which was 1% more than a week earlier but 21% less than a year earlier. States with more than 40% of pasture and range rated as Poor or Very Poor include: Illinois (42%); Michigan (56%) and Pennsylvania (48%).
Corn and soybean condition continued to deteriorate.
55% of corn was rated, Good (47%) or Excellent (8%) condition, compared to 61% the previous week and 70% the previous year. 12% was as Poor (9%) or Very Poor (3%), which was 4% more than previous week and 6% more than a year earlier.
54% of soybeans were rated in Good (47%) or Excellent (7%) condition, which was 5% less than the previous week and 14% less than the same week last year. 12% of soybeans were in Poor (9%) or Very Poor (3%) condition, versus 9% the previous week and 6% the previous year.
15% of winter wheat was harvested, which was 8% less than last year and 5% less than the average. 38% was rated in Good (32%) or Excellent (6%) condition, the same as a week earlier and 8% more than a year earlier. 29% was rated Poor (18%) or Very Poor (11%), which was 2% less than the previous week and 14% less than a year earlier.