Although too few transactions to trend, there were some dressed sales in Nebraska and the western Corn Belt on Thursday at $205/cwt., which was even with last week and $1 higher than sales the day before.
Futures traders applied pressure to Feeder Cattle early in the session amid sluggish trade and general bearishness. Apparent profit taking ultimately helped lift prices above session lows. Live Cattle traded both sides of even.
After 5¢ higher in spot Apr, Live Cattle futures closed 5¢ to 32¢ lower.
After 30¢ higher in spot Mar, Feeder Cattle futures closed an average of 38¢ lower in the next four contracts (7¢ to 62¢ lower) and then 7¢ to 22¢ higher.
Choice boxed beef cutout value was $1.27 higher on Thursday afternoon at $222.30/cwt. Select was 50¢ higher at $215.60.
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Major U.S. financial indices closed sharply lower again on Thursday, with lots of help from President Trump’s announcement that the U.S. will levy tariffs on steel and aluminum imports, starting next week. If so, that will likely add an unwelcome wrinkle to NAFTA negotiations.
The Dow Jones Industrial Average closed 420 points lower. The S&P 500 closed 36 points lower. The NASDAQ closed 92 points lower.
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Wholesale beef values continue to find traction earlier than usual from a seasonal standpoint. Week to week on Thursday, Choice boxed beef cutout value was $3.90 higher and Select was $3.54.
“There are certainly retailers who are purchasing product for the spring months, but those sales are probably not as strong as what the current spot market price reflects,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments.
Between rising beef prices and lower cash fed cattle prices last week—and mostly lower again so far this week, Griffith explains, “…lower input costs and higher output prices have allowed packers to experience improved margins. The values to keep an eye on that will have the greatest influence on beef prices are beef production, imports, and exports. Production is sure to increase, while import and export levels are less certain.”