Tuesday markets
Despite Choice boxed beef prices climbing above $400, cattle futures closed lower as traders are looking for fundamental support.
Live cattle futures closed lower, with the June contract down 67 cents to $255.15 and the August contract $1.35 lower to $246.
“June LC is in its final days, and August will move up into the number one spot next Wednesday,” wrote Cassie Fish, market analyst, for The Beef. “August is trading at a $13 discount to cash, stubbornly reflecting widespread bearish sentiment. In order for August LC to be correct, a sustainable cash fed cattle break must be achieved.”
Cash trade was light, with 373 head sold. Live steers sold for $260, and dressed steers for $408. On the formula side, 23,600 head averaging 937 lbs. sold for an average of $409.39.
The national weekly direct beef type price distribution for the week of June 15-22 was the following on a live basis:
• Negotiated purchases: $258.97.
• Formula net purchases: $260.04.
• Forward contract net purchases: $252.82.
• Negotiated grid net purchases: $261.79.
On a dressed basis:
• Negotiated purchases: $406.85.
• Formula net purchases: $408.64.
• Forward contract net purchases: $383.25.
• Negotiated grid net purchases: $408.69.
Today’s slaughter is estimated to be 110,000 head, 1,000 head above last week.
Boxed beef prices were higher on 93 loads, with the Choice cutout up $4.25 to $400.31 and the Select cutout $5.47 higher to $381.06.
“Well, it is summer and temps are forecast to rise next week, right before the big July 4th celebration,” Fish wrote. “Boxed beef prices are hot too, Choice making a new high for the move and the rib making a new high for 2026 at $601/cwt. Today the USDA reported the midday quote for Choice at $400.26, finally breaching the $400 mark. It has been a very slow and steady grind higher for boxes for the last few weeks.”
Feeder cattle
Feeder cattle futures also closed lower, with the August contract down $2.27 to $368.15 and the September contract $1.85 lower to $366.97.
The CME Feeder Cattle Index was $3.50 higher to $370.56.
Corn futures traded lower, with the July contract down a penny to close at $4.09 and the September contract 2 cents lower to $4.17. — Charles Wallace, WLJ contributing editor
