Cattle futures moved ahead Tuesday, mostly erasing losses from the previous session.
Live Cattle futures closed an average of 81¢ higher (52¢ to $1.32 higher).
Feeder Cattle futures closed an average of $1.12 higher (75¢ to $1.50 higher).
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $183/cwt. in the Southern Plains, $183-$184.50 in Nebraska and $183-$184 in the western Corn Belt. Dressed delivered prices were $290.
Choice boxed beef cutout value was $1.51 lower Tuesday afternoon at $304.79/cwt. Select was 30¢ lower at $294.87/cwt.
Grain and Soybean futures softened Tuesday with likely pressure from profit taking and producer selling.
Corn futures closed mostly 3¢ to 4¢ lower.
KC HRW Wheat futures closed mostly 6¢ to 11¢ lower.
Soybean futures closed 1¢ to 6¢ lower.
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Major U.S. financial indices closed sharply lower Tuesday, led by tech stocks.
The Dow Jones Industrial Average closed 404 points lower. The S&P 500 closed 52 points lower. The NASDAQ was down 267 points.
West Texas Intermediate Crude Oil futures (CME) 59¢ to 79¢ lower through the front six contracts.
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Tighter supplies continue boosting cull cow and cow beef prices.
“Southern Plains auction prices for 85-90% lean cows jumped from $85/cwt. to $105 over the last two weeks. National average cutter quality cows hovered around $100,” says David Anderson Extension livestock economist with Texas A&M AgriLife Extension Service, in the latest issue of In the Cattle Markets from the Livestock Marketing Information Center.
Besides cull cow prices tending to increase until May-June, as cow slaughter declines seasonally Anderson explains beef and dairy cow slaughter remains less year over year.
“Since the first of the year, cow beef production has been about 14% lower than the same period last year. Heavier weights are boosting pounds of production, partially offsetting fewer animals slaughtered,” Anderson says. “The boxed cow beef cutout hit $240/cwt. at the end of February, up from about $205 at the beginning of the year and $32 higher than the same week in 2023.”
Moreover, Anderson says the approaching grilling season should further support prices.