Cash fed cattle continued on Wednesday at mostly higher money. Live sales in the western Corn Belt were $2-$3 more than last week at $128-$131/cwt. Dressed trade was mostly $3 higher at $207.
Earlier in the day, the handful of cattle (113 head—2 lots from Kansas) offered in the weekly Fed Cattle Exchange Auction, sold even with the $127 price established in the Southern Plains on Tuesday.
Cash trade failed to budge futures traders much. Early on, prices rallied higher but ran out of steam in a hurry.
Except for $1.10 higher in spot Apr, Live Cattle futures closed unchanged to an average of 20¢ higher.
Except for 7¢ and 27¢ lower at the back, Feeder Cattle futures closed an average of 50¢ higher.
Choice boxed beef cutout value was 38¢ higher Wednesday afternoon at $224.11/cwt. Select was 26¢ higher at $217.01.
********************************
Major U.S. financial indices closed lower again on Wednesday. Negative news included a sharp decline in Boeing stock on investor fears about a potential trade war with China. Fundamental pressure came from another monthly decline in U.S. retail sales, according to the U.S. Commerce Department.
The Dow Jones Industrial Average closed 248 points lower. The S&P 500 closed 15 points lower. The NASDAQ closed 14 points lower.
******************************
“To the extent that drought conditions in the Southern Plains have diminished pasture availability, more cattle have been placed in feedlots in late 2017 and early 2018 than in the prior year. This likely diminishes the pool of cattle available for placement throughout the first-half of 2018,” say analysts with USDA’s Economic Research Service (ERS), in the latest Livestock, Dairy and Poultry Outlook. “The price forecast for feeder steers 750-800 lbs. was adjusted lower for the first quarter to $146-$149/cwt on current price movements. In the second quarter, fewer calves will likely be available for placement, which should keep prices relatively strong at $144-$152/cwt.”
Based on current cash cattle prices and expectations of wholesale beef prices continuing to show demand strength, ERS analysts adjusted the projected first-quarter fed steer price higher to $124-$127/cwt.