Cattle futures extended gains Tuesday, boosting optimism that a near-term bottom might have been established.
Toward the close, Live Cattle futures were an average of $2.71 higher. Feeder Cattle futures were an average of $3.38 higher.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
FOB live prices last week were $218/cwt. in the South Central region, mostly $216-$218 in Nebraska and $210-$218 in the western Corn Belt. Dressed delivered prices were $330-$340 in Nebraska and mostly $340 in the western Corn Belt.
Choice boxed beef cutout value was 24¢ higher Tuesday afternoon at $362.98/cwt. Select was $2.11 lower at $351.62.
Grain and Soybean futures were higher Tuesday, supported by lower ending stocks in the World Agricultural Supply and Demand Estimates (see below).
Through late afternoon, and through the front four contracts, Corn futures were 8¢ higher on lower USDA yield estimates. Soybean futures were 37¢ to 43¢ higher. Kansas City HRW Wheat futures were 1¢ to 2¢ higher.
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Major U.S. financial indices closed lower on Tuesday, pressured by a hotter inflation reading than expected.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4% on a seasonally adjusted basis in October, according to the U.S. Bureau of Labor Statistics.
The Dow Jones Industrial Average closed 157 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 187 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were 37¢ to 56¢ lower through the front six contracts.
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USDA’s Economic Research Service (ERS) reduced the estimated average five-area direct fed steer prices for the remainder of this year in the November World Agricultural Supply and Demand Estimates.
Compared to the previous month and based on recent price weakness combined with the ready supply of cattle in the fourth quarter, projected prices declined by $5 in the fourth quarter to $220/cwt. and by $1.25 for than annual average at $236.31.
That was with beef production this year estimated 40 million pounds less than the previous month at 24.76 billion pounds, which would be 1.24 billion pounds less (-4.8%) than last year.
Projected prices for next year were unchanged at $235 in the first and second quarters, $240 in the third quarter and $238 for the 2027 annual average price. Projected beef production of 24.52 billion pounds in 2027 would be 242 million pounds less (-1%) than this year’s estimated production.
Among other WASDE highlights…
Corn
The 2026/27 U.S. corn outlook was for smaller production, domestic use, exports and ending stocks. Corn production was forecast at 15.9 billion bushels, down 141 million from last month with a 1.6-bushel reduction in yield to 179.6 bushels per acre. Harvested area for grain remained at 88.5 million acres.
With a smaller crop, feed and residual use was lowered 25 million bushels to 6.0 billion. Exports were also lowered 25 million bushels to 3.3 billion, reflecting shipments and sales to date. Corn ending stocks were reduced to 1.8 billion bushels.
The season-average corn price received by producers was lowered 10¢ per bushel to $4.60.
Soybeans
The U.S. soybean outlook for 2026/27 showed increased production and exports, and lower ending stocks. Soybean production was forecast at 4.6 billion bushels, up 12 million, with most of the change from higher yields in Minnesota, Iowa, South Dakota and Nebraska.
Soybean exports were raised 25 million bushels, based on larger supplies and the early- season export pace. With slightly higher seed use and unchanged crush, soybean ending stocks were lowered 15 million bushels to 300 million.
The U.S. season-average soybean price for 2026/27 was forecast at $12.10 per bushel, up 10¢ from last month. The soybean meal price forecast was unchanged at $340 per short ton. The soybean oil price was lowered 2¢ to 68¢ per pound.
Wheat
The outlook for 2026/27 U.S. wheat was for unchanged supplies, slightly lower domestic use, steady exports and modestly higher ending stocks.
Projected all wheat ending stocks were raised by 3 million bushels to 743 million but are still 19% below last year. The season-average farm price was lowered 10¢ per bushel to $6.20 on NASS prices reported to date and expectations for futures and cash prices for the remainder of the marketing year.