Cattle futures closed lower again Tuesday, at a more modest pace, with follow-through pressure from oversold status and awaiting the week’s cash fed cattle trade direction.
Feeder Cattle futures closed an average of 72¢ lower (35¢ to $1.60 lower).
Live Cattle futures closed an average of 56¢ lower.
Negotiated cash fed cattle trade was at a standstill in all regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $182-$183/cwt. in the Southern Plains, $184-$185 in Nebraska and $185 in the western Corn Belt. Dressed delivered prices were $292.
Choice boxed beef cutout value was $3.20 lower Tuesday afternoon at $302.12/cwt. Select was $1.63 lower at $281.78/cwt.
Corn futures firmed in the front months, buoyed by recent crop ratings. They closed mostly 2¢ to 4¢ higher through Jly ‘25.
KC HRW Wheat closed 1¢ to 4¢ lower.
Soybean futures closed 1¢ lower through Aug ‘24 and then unchanged to fractionally higher.
Major U.S. financial indices closed lower Tuesday as investors appeared skittish over the Fed’s looming next decision about interest rates.
The Dow Jones Industrial Average closed 106 points lower. The S&P 500 closed 9 points lower. The NASDAQ was down 32 points.
West Texas Intermediate Crude Oil futures (CME) closed 9¢ to 28¢ lower through the front six contracts.
Although less than last year, September estimates suggest corn prices are likely to remain in their current price range, says Kenny Burdine, Extension livestock economist at the University of Kentucky, in the latest Cattle Market Notes Weekly.
“Holding everything else constant, higher corn prices lead to lower feeder cattle prices as greater cost of gain decreases the value of cattle placed into feeding programs. However, higher feed prices also result in higher value of gain as feedlots are incentivized to place heavier cattle,” Burdine explains. “The September report (WASDE) suggests that opportunities to profitability add gain to calves and sell heavier cattle are likely to remain in the coming months. This will be especially true for cow-calf and growing operations that have potential to add gain through forage or alternative feeds. Producers should continue to be diligent about evaluating costs and market conditions as they make decisions about post-weaning and backgrounding programs.”