AgResource Daily Cattle Analysis: Cattle and feeder cattle futures closed lower on Tuesday, and a mixed outlook is offered for early trade today. Feeder cattle paced Tuesday’s decline despite weaker corn prices, and most feeder contracts were down $3.00. Live cattle were lower but followed feeder cattle at a distance amid an outlook for steady cash prices this week.

Negotiated fed cattle markets remained untraded through Tuesday. Offers in the south were quoted at $189-190. However, hedged feedyards could turn willing sellers on steady bids if they can pick up another $1-2 on basis.

Boxed beef values marked strong gains on Tuesday as packers passed along higher cattle prices. The choice cutout gained $3.51 and select was up $2.99.

Cattle slaughter on Tuesday totaled 125,000 head, pushing the early week total to 245,000 or 11,000 head more than last week. At mid-month, the cumulative slaughter stands at 1.323 Mil head, 79,000 (6%) more than a year ago but still well below the 2018-2022 totals.

Initial support in December cattle is expected under $184, while rallies above $188 need to be led by strength in the cash market. The US November 5th election looms large across raw material markets.

A graph showing cattle slaughter

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