Cattle futures, especially Feeder Cattle bounced higher Tuesday, supported by likely month-end and quarter-end position squaring and the quarterly Grain Stocks report (see below).
Toward the close, Live Cattle futures were an average of $1.38 higher. Feeder Cattle futures were an average of $5.08 higher.
Negotiated cash fed cattle trade was inactive on light to moderate demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $237/cwt. in the Texas Panhandle, $235-$237 in Kansas, $232-$235 in Nebraska and mostly $232 in the western Corn Belt. Dressed delivered prices were $365.
Choice boxed beef cutout value was 35¢ higher Monday afternoon at $371.03/cwt. Select was $1.64 lower at $347.25.
Corn futures wilted beneath harvest pressure and estimates of more than expected quarterly stocks.
Toward the close and through Jly contracts, Corn futures were 5¢ to 6¢ lower. KC HRW Wheat were mostly 8¢ to 11¢ lower. Soybean futures were 9¢ to 11¢ lower.
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Major U.S. financial indices crawled higher Tuesday despite growing prospects of a government shutdown.
The Dow Jones Industrial Average closed 88 points higher. The S&P 500 closed 27 points higher. The NASDAQ was up 68 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 95¢ to $1.02 lower.
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USDA’s quarterly Grain Stocks report for stocks as of Sept. 1 helped jolt futures lower Tuesday.
Old crop corn stocks in all positions of 1.53 billion bushels were 13% less year over year, but significantly more than the average trade guess.
Of the total corn stocks, 643 million bushels were stored on farms, down 18% from a year earlier. Off-farm stocks, at 888 million bushels, were down 10% from a year ago.
Turning to soybeans, old crop stored in all positions totaled 316 million bushels, down 8% from September a year earlier. Soybean stocks stored on farms totaled 91.5 million bushels, which was 18% less year over year. Off-farm stocks of 225 million bushels were 3% less.
Finally, all wheat stored in all positions on Sept. 1 totaled 2.12 billion bushels, up 6% from a year ago. On-farm stocks were estimated at 692 million bushels, up 4% from last September. Off-farm stocks of 1.43 billion bushels were 7% more.