Cattle futures extended gains Tuesday, supported by another day of firmer Choice boxed beef cutout values and likely short covering.
Toward the close, Live Cattle futures were an average of 96¢ higher. Feeder Cattle futures were an average of $1.56 higher.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $3 lower in the Southern Plains at $187/cwt. and $3-$4 lower in Nebraska at $186-$187 and $2-$5 lower in the western Corn Belt at $185-$188. Dressed delivered prices were $2-$4 lower in Nebraska at $294 and $4 lower in the western Corn Belt at $294.
Choice boxed beef cutout value was 6¢ higher Tuesday afternoon at $308.27/cwt. Select was $1.92 higher at $279.92.
Grain and Soybean futures were lower Tuesday, with likely pressure from the stronger U.S. Dollar, profit taking and producer selling.
Toward the close and through Sep ’25 contracts, Corn futures were 1¢ to 2¢ lower. Kansas City Wheat futures were 11¢ to 13¢ lower. Soybean futures were mostly 8¢ to 13¢ lower.
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Major U.S. financial indices softened Tuesday with likely profit taking and investor wariness about Tuesday’s inflation data.
The Dow Jones Industrial Average closed 382 points lower. The S&P 500 closed 17 points lower. The NASDAQ was down 17 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were 7¢ to 13¢ lower through the front six contracts.
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Although bred cow prices are higher year over year, Rob Ziegler, Extension specialist at the University of Wyoming says the increase is likely due to supply and higher cattle prices rather than expansion demand.
In the latest issue of In the Cattle Markets, Ziegler explains the October Cattle on Feed report pegged heifers at 40% of total cattle on feed, whereas consensus suggests the number needs to be 36-37% to signal herd expansion.
“At this point there is little indication that beef cattle producers are retaining heifers to increase cow herd numbers,” Ziegler says.