Negotiated cash fed cattle trade remained undeveloped through Tuesday afternoon.
Choice 2-4 steers sold $4.25-$4.50/cwt. lower at the fat auction in Dunlap, IA, bringing an average of $97.76 at an average weight of 1,374 lbs.
Cattle futures showed some life, though, with support from oversold conditions and after early follow-through pressure.
Live Cattle futures closed an average of $1.87 higher ($1.67 to $2.35 higher).
Feeder Cattle futures closed an average of $1.32 higher.
Wholesale beef values were lower on light demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.57 lower Tuesday afternoon at $225.38/cwt. Select was 94¢ lower at $200.98.
Grain futures traded higher Tuesday, perhaps on this week’s USDA Crop Progress report (see below), as well as some defensiveness heading into Thursday’s World Agricultural Supply and Demand Estimates.
Corn futures closed 6¢ to 7¢ higher through Sep ’20 and then mostly 3¢ to 4¢ higher.
Soybean futures closed 10¢ to 14¢ higher through Sep ’20 and then fractionally higher to 3¢ higher.
Major U.S. financial indices softened Tuesday, led by tech stocks, but closed little changed.
The Dow Jones Industrial Average closed 73 points higher. The S&P 500 closed fractionally higher. The NASDAQ was down 3 points.
Plenty of folks will be sorting through the monthly World Agricultural Supply and Demand Estimates (due Thursday morning) for clues about where USDA sees crop yield and production at this point.
Allendale Inc. projects the USDA number for corn production at 13.90 billion bu. Based on its own Nationwide Yield Survey, Allendale projects production at 13.78 billion bu., with a yield of 167.71 bu./acre.
As for soybeans, Allendale projects yield at 46.13 bu./acre for production of 3.50 billion bu. They expect USDA to come out with an estimate of 3.68 billion bu.
In the meantime, corn crop condition lost ground last week, according to the most recent Crop Progress report for the week ending Sept. 8.
89% of corn was at the dough stage, which was 10% less than last year and 8% less than average. 55% was dented, which was 29% less than last year and 22% less than the average. 11% was mature, compared to 33% a year earlier and 24% for the five-year average. 55% was in Good (45%) or Excellent (10%) condition, which was 3% less than the previous week and 13% less than last year. 14% was in Poor (10%) or Very Poor condition (4%), which was 2% more than a year earlier.
92% of soybeans were setting pods, which was 8% less than the previous year and 7% less than the average. 55% were rated in Good (45%) or Excellent (10%) condition, the same as a week earlier, but 13% less than a year ago. 12% were in Poor (9%) or Very Poor (3%) condition, which was 2% more than a year earlier.
71% of spring wheat was harvested, which was 21% less than last year and 16% less than average.
97% of sorghum was headed, which was 2% less than the previous year and 1% less than the average. 65% was coloring, compared to 78% for the prior year and 74% for average. 27% was mature, which was 6% less than last year and 10% less than average. 22% was harvested, which was 2% less than last year and the average. 68% was in Good (53%) or Excellent (15%) condition, which was 15% more than a year earlier. 6% was rated as Poor (5%) or Very Poor (1%), compared to 17% last year.
51% of the nation’s pasture and range was rated in Good (43%) or Excellent (8%) condition, compared to 53% a week earlier and 43% last year. 20% was rated as Poor (14%) or Very Poor (6%), compared to 26% a year earlier.