Cattle futures bounced back Tuesday, as traders absorbed news of Tyson’s plans to reduce packing capacity, and perhaps some latent reaction to Friday’s Cattle on Feed report, which underscored declining cattle numbers.
Toward the close, Live Cattle futures were an average of $2.01 higher (5¢ to $3.25 higher), except for an average of 71¢ lower in the front two contracts.
Feeder Cattle futures were an average of $2.66 higher, except for $1.82 lower in away Nov. and no trend in the back contract.
Negotiated cash fed cattle trade was moderate on good demand in Nebraska through Tuesday afternoon, according to the Agricultural Marketing Service. FOB live sales were $8-$9 lower at $209-$212/cwt. Dressed delivered prices were $10-$15 lower at $330.
In the western Corn Belt, trade was light on moderate demand. FOB live prices were $7-$10 lower at $208 and dressed delivered trades were $12-$17 lower at $328-$330.
Trade in the Southern Plains was inactive on light demand. Last week, FOB live prices were $224 in the Texas Panhandle and $222-$224 in Kansas.
Choice boxed beef cutout value was 40¢ lower Tuesday afternoon at $370.09/cwt. Select was 42¢ higher at $355.93.
Grain and Soybean futures bounced higher Tuesday.
Toward the close and through Jly contracts, Corn futures were unchanged to 2¢ higher. KC HRW Wheat futures were 4¢ to 7¢ higher. Soybean futures were fractionally higher to 2¢ higher.
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Major U.S. financial indices extended gains on Monday, led by tech stocks.
The Dow Jones Industrial Average closed 664 points higher. The S&P 500 closed 60 points higher. The NASDAQ was up 153 points.
Though mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 63¢ to 84¢ lower through the front six contracts.
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Economic pressure on agricultural crops continues to challenge rural economies, according to the November Creighton University Rural Mainstreet Index (RMI). Although the overall index increased 9.4 points from October to a weak 44.0, it remained below growth neutral for the ninth time this year.
The RMI ranges between 0 and 100 with 50.0 representing growth neutral. It is based on a survey of bankers in a 10-state region dependent on agriculture and/or energy.
Regional dependence on crop or livestock production shaded current views. About 32% of bankers indicated their rural economies were in an economic recession and 31% saw recession coming in 2026. However, 33% of bankers saw solid growth and no recession.
Among other key findings…
- Farmland prices sank below growth neutral for the 18th time in the past 19 months. Approximately, 58.3% of bankers expect farmland prices to fall in 2026, with an average decline of 3.1%.
- On average, bank CEOs expect 18.3% of farmers and ranchers in their area to record negative cash flow for 2025.
- Farm equipment sales dropped below growth neutral for the 27th consecutive month.