Tuesday markets
Cattle futures closed mostly lower as markets are still reacting to the Cattle on Feed report.
“The market has taken multiple blows as of late, the closing of another major fed cattle processing plant and a political policy change to accelerate the importation of beef are just two,” wrote Cassie Fish, market analyst, in The Beef. “But the market has its own issues. The historically slow turnover rate out of feedyards for a couple of years has finally resulted in a record buildup of cattle-on-feed with 180 days or more. This pendulum has swung about as far as it can and there are now plenty of market ready fed cattle around- a supply that will grow all fall long. Couple that with a slow down in consumer beef demand as retailers refuse to lower prices and the outlook is decidedly bearish.”
Live cattle futures closed lower, with the August contract down $1.97 to $218.10 and the October contract $2.65 lower to $210.95.
“On a spot basis, live cattle futures have declined $40.82/cwt since topping in April or 15.8%,” Fish wrote. “Given that June LC expired very near that April high, all of the break has occurred in July and August. Spot feeder cattle futures have declined just under $50/cwt or 13% since topping in October 2025. Spot feeders failed to make a new high in 2026.”
Cash trade was moderate, with 14,043 head sold. Live steers sold from $217-218, and dressed steers sold between $345-354. On the formula side, 30,200 head averaging 950 lbs. sold for an average of $365.92.
“As of last week, negotiated fed cattle prices have declined $37.84/cwt since topping in May or 14.4%,” Fish wrote. “This week’s negotiated cash trade has gotten started at $217 to $218 live in the north and $345 dressed. That’s $7 to $8 lower live and $10 lower dressed than last week.”
The national weekly direct beef type price distribution for the week of Aug 17-24 was the following on a live basis:
• Negotiated purchases: $224.99.
• Formula net purchases: $234.74.
• Forward contract net purchases: $244.76.
• Negotiated grid net purchases: $244.88.
On a dressed basis:
• Negotiated purchases: $355.46.
• Formula net purchases: $370.42.
• Forward contract net purchases: $379.98.
• Negotiated grid net purchases: $371.71.
Today’s slaughter is estimated to be 107,000 head, 1,000 head above the previous week.
Boxed beef prices were higher on 101 loads, with the Choice cutout up $2.84 to $388.53 and the Select cutout $3.96 higher to $368.98.
Feeder cattle
Feeder cattle futures closed mixed, with the August contract up 15 cents to $333.72 and the September contract down $4.95 to $319.27. Deferred contracts closed $4.70 to $5.65 lower.
The CME Feeder Cattle Index was down $2.53 to $338.47.
Corn futures climbed higher, with the September contract up 9 cents to $5 and the December contract 8 cents higher to $5.23.
New Mexico: Roswell Livestock in Roswell sold 701 head on Tuesday. Compared to the last auction, steer calves 350-500 lbs. sold sharply lower, with 550-600 lbs. trading $20 lower. Feeder steers sold lower. Heifer calves sold $10-30 lower and feeder heifers were lower. Benchmark steers averaging 761 lbs. sold from $285-300, averaging $288.51.
Texas: Giddings Livestock in Giddings sold 1,146 head on Monday. Compared to the last auction, feeder steers and heifers sold $15-25 lower. Benchmark steers averaging 717 lbs. sold for $300-318, averaging $308.11. — Charles Wallace, WLJ contributing editor
