Wednesday markets
Feeders were the leaders lower, as corn futures closed sharply higher due to a favorable World Agricultural Supply and Demand Estimates (WASDE) report from the USDA.
“CME cattle futures opened lower and quickly sold off, stopping just short of last week’s low,” wrote Cassie Fish, market analyst, in The Beef. “Ideas shifted immediately from hopes for a further futures rally to fears that was all the rally the market could muster.”
Live cattle futures closed lower, with the August contract down $2.17 to $230.57 and the October contract $252 to $223.80.
Cash trade was moderate, with 3,862 head sold. Dressed steers sold from $365-370. On the formula side, 29,300 head averaging 942 lbs. sold for an average of $372.93.
Today’s slaughter is estimated to be 106,000 head, the same as last week.
Boxed beef prices were higher on 105 loads, with the Choice cutout up 97 cents to $372.28 and the Select cutout up a penny to $349.81.
The lean beef trim contracts were unchanged for the day. The 50% lean trim August contract was $169, and the September contract was $159. The 90% lean beef trim August contract was $449, and the September contract closed at $442.
DTN livestock analyst ShayLe Stewart said USDA’s August WASDE report painted a mostly bearish picture for cattle and beef markets. USDA lowered its 2026 beef production forecast by 321 million lbs. Steer price forecasts also moved lower, with third-quarter 2026 prices projected at $242/cwt, down $13 from July, and fourth-quarter prices at $245, down $10. Looking ahead to 2027, USDA expects first-quarter steer prices to average $245, down $5 from last month, and second-quarter prices to average $250, also down $5. Beef exports for 2026 were unchanged, while imports increased by 73 million lbs., reflecting the planned Aug. 24 resumption of Mexican cattle imports.
Feeder cattle
Feeder cattle futures closed lower, with the August contract down $3.82 to $346.35 and the September contract $5.90 lower to $339.35.
The CME Feeder Cattle Index was down $1.76 to $354.22.
Corn futures closed higher, as the WASDE showed USDA boosted corn acres by 1.4 million acres and increased production to 16.01 billion bushels despite dropping the corn yield by 2.3 bushels per acre. The September and December contracts climbed 20 cents to $4.57 and $4.80, respectively.
Texas: Lonestar Stockyards in Wildorado sold 646 head on Tuesday. Compared to the last auction, steer and heifer calves traded mostly steady to $5 higher on a light test. There were not enough comparable yearling sales for a market test. A group of benchmark fleshy steers averaging 728 lbs. sold for $356.
Utah: Producers Livestock in Salina sold 518 head on Tuesday. A trend was unavailable due to a lack of comparable sales. A group of benchmark steers averaging 786 lbs. sold for
$320-$324, averaging $323.45. — Charles Wallace, WLJ contributing editor
