Tuesday markets
Livestock futures staged a strong turnaround Tuesday, with triple-digit gains in live and feeder cattle as traders shrugged off yesterday’s losses and refocused on sustaining last week’s cash market strength.
“The $15/cwt discount of lead August live cattle futures to the average negotiated fed cattle price continues to provide support on breaks in CME cattle futures,” wrote Cassie Fish, market analyst, in The Beef. “The discount has proved to be too steep throughout 2025, or the cash fed cattle price too strong, depending on which side of the coin is preferred.”
Live cattle futures were higher, with the August contract up $3.05 to $222.40 and the October contract up $2.50 to $219.27.
Cash trade was minimal, with 746 head sold. Live steers sold for $238, and dressed steers sold for $380.
On the formula side, 30,700 head averaging 901 lbs. sold for an average of $363.83.
The national weekly direct beef type price distribution for the week of July 7-14 was the following on a live basis:
• Negotiated purchases: $237.08.
• Formula net purchases: $230.12.
• Forward contract net purchases: $201.61.
• Negotiated grid net purchases: $234.47.
On a dressed basis:
• Negotiated purchases: $379.10.
• Formula net purchases: $362.68.
• Forward contract net purchases: $319.10.
• Negotiated grid net purchases: $376.34.
Today’s slaughter is estimated to be 118,000 head, the same as the previous week.
“With an improvement in orders and margins, packers are likely to keep slaughter levels somewhat stable in the 565k to 570k area, worst case for the rest of July,” Fish wrote. “Last week’s larger transfer of ownership of cattle from feeder to packer ought to support stable production schedules—even as they continue to be constrained compared to the last several years, running down over 6% year to date.”
Boxed beef prices were mixed on 147 loads, with the Choice cutout up 63 cents to $377.70 and the Select cutout down $2 to $362.58.
Feeder cattle
Feeder cattle futures also gained triple digits, with the August contract up $2.80 to $322.27 and the September contract up $2.80 to $322.37.
The CME Feeder Cattle Index was down $3.48 to $319.89.
Corn futures closed slightly higher, with the September and December contracts up a penny to $4.01 and $4.19, respectively.
Texas: Giddings Livestock in Giddings sold 878 head on Monday. Compared to the sale two weeks ago, feeder steers were up $6-10. Feeder heifers were fully steady to $6 higher. A group of steers averaging 728 lbs. sold for $307-340, averaging $324.07. — Charles Wallace, WLJ contributing editor
