Cattle futures continued higher Tuesday for the second consecutive session, perhaps establishing a bottom.
At the close and before final settlement, Live Cattle futures were an average of $1.59 higher. Feeder Cattle futures were an average of $2.38 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 $182/cwt. in the Southern Plains, $184 in Nebraska and $185 in the western Corn Belt. Dressed delivered prices were $293.
Choice boxed beef cutout value was $2.86 lower Tuesday afternoon at $298.02/cwt. Select was $1.30 higher at $292.64/cwt.
Turning to row crops, heading into the close, Corn and Soybean futures were lower again with likely pressure from positive weather and the early planting pace. According to USDA’s weekly Crop Progress report, 6% of corn was in the ground, which was 1% more than the five-year average; and 3% of soybeans were planted, which was 2% more than average.
Corn futures were mostly 1¢ to 2¢ lower through Dec ‘25. Soybean futures were 8¢ to 13¢ lower through Jly ’25. However, Kansas City Wheat futures were mostly 1¢ to 3¢ higher through Jly ’25.
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Major U.S. financial indices closed little changed Tuesday as investors wrestle with sticky inflation and the prospects of a longer period before the Fed can reduce interest rates.
The Dow Jones Industrial Average closed 63 points higher. The S&P 500 closed 10 points lower. The NASDAQ was down 19 points.
West Texas Intermediate Crude Oil futures (CME) were little changed through the front six contracts.
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Although Choice boxed beef cutout values are a touch higher than this time last year, David Anderson, Extension livestock economist with Texas A&M AgriLife Extension Service says some see weakness compared to higher year-over-year calf and fed cattle prices.
“Several factors are at work in cutout value,” Anderson says in the latest issue of In the Cattle Markets from the Livestock Marketing Information Center (LMIC). “In some ways, the market is in the winter-to-spring transition period, moving from winter-time roasts and other end cuts to steaks for grilling season. Primal cut values for chucks and rounds have been declining while the primal loin has been increasing. The rib and wholesale ribeye values have not increased seasonally heading into grilling season. Lean beef for ground beef has soared in value while 50% lean has remained depressed.”
Anderson notes counter-seasonally heavier carcass weights fostered by positive weather, cheaper feed and longer feeding periods.
“Beef grading Choice has increased by more than one percentage point, to over 74%, about the same as last year, while Prime is 1.5 percentage points higher than a year ago, at 11.5%,” Anderson says. “When combined with larger beef production, the grading percentages mean that we have more Prime and Choice beef than this time last year. Increased Choice supplies and fewer Select supplies are helping to pressure the Choice-Select spread to under $5 per cwt.”