Cattle futures started and ended the session higher Tuesday, supported by last week’s stronger cash prices and the neutral monthly Cattle on Feed report, Live Cattle futures were an average of 83¢ higher. Feeder Cattle futures were an average of $3.52 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1 higher in the Southern Plains at $187/cwt., $2 higher in Nebraska at $192 and steady to $2 higher in the western Corn Belt at $190-$192.
Dressed delivered prices in Nebraska were $4-$6 higher at $304 and $2-$4 higher in the western Corn Belt at $302-$304 in a light test.
The weighted average five-area direct FOB live steer price last week was $1.55 higher at $190.09. The average dressed delivered steer price was $4.10 higher at $303.49.
Choice boxed beef cutout value was $1.67 higher Tuesday afternoon at $312.12/cwt. Select was $1.71 higher at $303.43/cwt.
Heading into the close Tuesday, through Jly ‘25, Kansas City Wheat futures were 5¢ to 12¢ higher. Corn futures were mostly 2¢ lower and Soybean futures were 2¢ to 8¢ higher.
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Major U.S. financial indices closed mixed Tuesday, led by tech stocks but pressured by the broader market as treasury yields rose.
The Dow Jones Industrial Average closed 216 points lower. The S&P 500 closed 1 point higher. The NASDAQ was up 99 points.
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Sluggish feedlot marketings continues adding to fed cattle weights.
“The latest weekly data shows steer carcass weights at 923 pounds, up 32 pounds compared to one year ago, and heifer carcass weights of 848 pounds, up 28 pounds from one year ago,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Increased carcass weights are partially offsetting reduced cattle slaughter and keeping beef production higher than otherwise. For the first 19 weeks of the year, beef production is down 2.1% year over year. Earlier forecasts called for 2024 beef production to be down nearly 5%, but those forecasts have been revised due to the heavy carcass weights.”
Although marketings for feedlots with 1,000 head or more capacity were 10.1% more year over year in April, according to the latest Cattle on Feed report, Peel explains daily average marketings were about the same year over year when adjusted for the two extra marketing days in 2024.
“April marketings were 15.8% of the April 1 on-feed inventory, the highest monthly rate since August 2023,” Peel says. “Nevertheless, the average marketing rate over the past 12 months remains historically low. Marketings in the first four months of this year are down 0.6% year over year.”