Cattle futures closed narrowly mixed Tuesday following the previous session’s strong showing.
Feeder Cattle futures closed an average of 26¢ lower, except for an average of 10¢ higher in two contracts.
Live Cattle futures closed an average of 26¢ higher, except for unchanged in the back contract.
Negotiated cash fed cattle trade was at a standstill in all regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $1 lower in the Southern Plains at $163/cwt., steady to $1 higher in Nebraska at $164-$165 and steady to $2 higher in the western Corn Belt at $164-$166. Dressed prices were $1 higher at $265.
Wholesale beef prices seem to be finding some seasonal footing. Choice boxed beef cutout value was 27¢ higher Tuesday afternoon at $280.63/cwt. Select was 64¢ higher at $270.36/cwt.
Short covering, stronger export inspections and a reduced outlook for harvested acres in Brazil helped Soybean close mostly 9¢ to 25¢ higher.
KC HRW Wheat closed 10¢ to 12¢ higher.
Corn futures closed mostly fractionally lower to 2¢ lower, except for mostly 2¢ higher in new-crop contracts.
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Major U.S. financial indices edged lower Tuesday, pressured in part by rising bond yields.
The Dow Jones Industrial Average closed 37 points lower. The S&P 500 closed 6 points lower. The NASDAQ was down 52 points.
West Texas Intermediate Crude Oil futures (CME) closed 36¢ to 41¢ higher through the front six contracts.
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Although still mostly positive between now and November, projected cattle feeding returns faded a bit from the previous month as cost of gains increased and anticipated fed cattle prices declined, according to Historical and Projected Kansas Feedlot Net Returns from Kansas State University.
Projected fed steer returns range from $8.47 per head in July to $146.15 in May. Returns are negative for September (-$9.31) and November (-$53.50). Feedlot cost of gain ranges from $114.08/cwt. in November to $143.35 in March.
Projected fed heifer returns follow a similar path, ranging from $6.44 in March to $101.24 per head in May. Returns are negative for July (-$11.42) and November (-$96.86). Feedlot cost of gain ranges from $125.62/cwt. in November to $164.24 in March.
The calculation process does not reflect any price risk management.