Wednesday markets
Cattle futures found support today as bulls worked to stabilize the market after sharp losses.
Live cattle futures closed higher, with the June contract up $1.05 to $224.30 and the August contract up $1.02 to $311.67.
“The morale throughout the cattle complex continues to be cautious, as there’s an unsettled essence of worry lingering throughout the contracts,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Traders are concerned the market is overbought and is long overdue for a correction. From a fundamental perspective, the market continues to be bullish and powerful, as boxed beef prices scale higher each day, and it’s assumed that in the worst-case scenario the fed cash cattle market will trade steady.”
Cash trade has begun for the week, with 17,144 head sold. Live steers sold for $235-238, and dressed steers sold between $375-378.
On the formula side, 23,400 head averaging 893 lbs. sold for an average of $377.82.
Today’s slaughter is estimated to be 113,000 head, 3,000 head above a week earlier.
Boxed beef prices were higher on 90 loads, with the Choice cutout up $2.36 to $388.87 and the Select cutout up 20 cents to $372.74.
The Cattle on Feed pre-report estimates show that feedlots with 1,000 head or greater will be 99% for cattle on feed in June. Placements in May are estimated to be 94.9%, and marketings for May are predicted at 90.3%.
USDA’s May 2025 Livestock, Dairy and Poultry Outlook projects U.S. beef production in 2026 will drop 5% year over year to 25.14 billion lbs. due to tighter feeder cattle supplies caused by the ongoing import ban on live cattle from Mexico. The 2025 production forecast is also lowered to 26.423 billion lbs. on slower fed cattle slaughter. Cattle prices are expected to rise in 2025 and are expected to hit new highs in 2026. Beef exports in 2026 are forecast to fall by over 6%.
Feeder cattle
Feeder cattle futures closed slightly higher, with the August contract up 82 cents to $304.17 and the September contract up 90 cents to $303.80.
The CME Feeder Cattle Index was down $2.85 to $311.04.
“Although the feeder cattle complex continues to see strong demand in the countryside, and thus far, the sales have been strong on the video auctions this week, the feeder cattle market continues to follow the live cattle contracts directly, not challenging their decisions whatsoever,” Stewart wrote.
Corn futures were higher, with the July contract up 2 cents to $4.33 and the September contract up 5 cents to $4.29.
Texas: Lonestar Stockyards in Wildorado sold 767 head on Tuesday. There were not enough sales for an accurate comparison, but a steady to lower undertone was noted. Steer
and heifer calves were weak to $6 lower on a light test. A group of steers averaging 695 lbs. sold for $315.
Utah: Producers Livestock in Salina sold 484 head on Tuesday. Compared to the last auction, feeder steers and heifers over 500 lbs. sold $5-10 higher, and under 500 lbs. were $3-10 lower. A group of steers averaging 670 lbs. sold for $330-335, averaging $330.45. — Charles Wallace, WLJ contributing editor
