Cattle futures continued lower Tuesday on wonderment about expected reduced tariffs on beef imports.
Toward the close, Live Cattle futures were an average of $2.45 lower. Feeder Cattle futures were an average of $5.94 lower.
Negotiated cash fed cattle trade was mostly inactive on moderate demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $256/cwt. in the Texas Panhandle, $255-$260 in Kansas and mostly $260 in the North. Dressed delivered prices were mainly $402 in Nebraska and $400-$405 in the western Corn Belt.
Choice boxed beef cutout value was 49¢ lower Monday afternoon at $390.73/cwt. Select was 22¢ lower at $391.27.
Grain and Soybean futures were higher Tuesday, buoyed by the World Agricultural Supply and Demand Estimates (see below).
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were 45¢ higher. Corn futures were mostly 3¢ to 6¢ higher. Soybean futures were 9¢ to 13¢ higher through near Nov.
******************************
Major U.S. financial indices closed mixed Tuesday. Pressure included a higher inflation reading than expected.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6% on a seasonally adjusted basis in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.8% before seasonal adjustment.
The index for energy rose 3.8% in April, accounting for more than 40% of the monthly all items increase.
The Dow Jones Industrial Average closed 56 points higher. The S&P 500 closed 11 points lower. The NASDAQ was down 185 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) closed $2.21 to $4.19 higher through the front six contracts.
******************************
USDA’s Economic Research Service (ERS) increased projected five-area direct FOB live fed steer prices for this year, in the May World Agricultural Supply and Demand Estimates (WASDE), based on recent data and tighter expected supplies. Compared to the previous month, prices were forecast $10 higher in the third and fourth quarters at $252/cwt. and $255, respectively. The projected annual average price increased by $8 to $249.66.
That was with beef production this year estimated 243 million pounds less (-0.9%) than the previous month at 25.5 billion pounds. The total would be 456 million pounds less (-1.8%) than last year.
“Beef production was forecast lower, as expected herd rebuilding and increased heifer retention will limit the availability of fed cattle for slaughter,” ERS analysts say. “Total U.S. red meat and poultry production for 2027 is forecast above 2026 production levels as higher pork and poultry production more than offset lower beef production.”
Among other WASDE highlights…
Corn
The 2026/27 U.S. corn outlook was for reduced supply, total use and ending stocks with higher expected prices. The corn crop was projected at 16.0 billion bushels, down 6% from a year ago on declines to both area and yield. Planted area of 95.3 million acres, if realized, would be down 3.5 million. The yield projection of 183.0 bushels per acre was based on a weather-adjusted trend assuming normal planting progress and summer growing season weather. Larger beginning stocks partially offset the forecast reduction in production, resulting in total corn supplies declining 2% percent to 18.1 billion bushels. Stocks would represent 12.1% of use, down from 13% the prior year but above the average of the last five years.
The season-average farm price for corn was projected at $4.40 per bushel, up 25¢ from the previous month.
Soybeans
The 2026/27 outlook for U.S. soybeans shows higher supplies, crush, exports, and lower ending stocks from the prior marketing year. The soybean crop was projected at 4.435 billion bushels, up 173 million from last year’s crop, reflecting trend yield and higher harvested area. Along with higher beginning stocks, supplies were 188 million bushels more than the 2025/26 marketing year.
U.S. soybean ending stocks for 2026/27 were projected at 310 million bushels, down 30 million from the revised 2025/26 forecast. The 2026/27 U.S. season-average soybean price was forecast at $11.40 per bushel, compared with $10.40 in 2025/26. The soybean meal price was forecast at $310 per short ton, down $5. The soybean oil price was forecast at 70¢ per pound, up 7¢.
Wheat
The 2026/27 outlook for U.S. wheat was for reduced supplies and exports, lower domestic use and smaller stocks compared with 2025/26. Wheat supplies were forecast down from last year with reduced production more than offsetting larger beginning stocks. All wheat production was projected at 1,561 million bushels, down 424 million from last year on reduced harvested area and yield. The all-wheat yield, projected at 47.5 bushels per acre, was 5.8 bushels lower than last year’s record yield. The first survey-based production forecast for 2026/27 winter wheat was down 25% from last year to 1,048 million bushels, primarily on sharply reduced Hard Red Winter production. Projected 2026/27 ending stocks were 18% less than last year at 762 million bushels.
The projected 2026/27 season-average farm price of $6.50 per bushel was $1.50 more than last year, based on a lower stocks-to-use ratio and a higher projected U.S. corn price.