Negotiated cash fed cattle prices surged $2-$4 higher in the Southern Plain on Thursday at mostly $121/cwt. in the Texas Panhandle and at $122 in Kansas; moderate demand and trade.
Bears took Cattle futures down a sharp notch on Thursday, despite higher cash trade and the fundamentals that provided recent stability—including a gap in harvest-ready fed cattle supplies in the North and a looming seasonal increase in wholesale beef values.
Besides likely profit taking overall, perhaps some of the funds with remaining long positions wanted out ahead of Friday’s Cattle on Feed report. As reported in Cattle Current yesterday, most analysts anticipate a sharp drop in March placements, while expecting the Apr. 1 on-feed inventory to be 7.0-7.5% higher than last year.
Live Cattle futures closed an average of $1.58 lower ($1.20 to $2.27 lower).
Feeder Cattle futures closed an average of $2.03 lower ($1.10 to $2.35 lower).
Choice boxed beef cutout value was 30¢ lower Thursday afternoon at $211.34/cwt. Select was 9¢ lower at $198.48.
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Major U.S. financial indices closed lower on Thursday. Pressure included lower tech stocks, based on the forecast for semiconductor sales.
The Dow Jones Industrial Average closed 83 points lower. The S&P 500 closed 15 points lower. The NASDAQ closed 57 points lower.
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Fire crews continue to make progress in containing the devastating wildfires raging in western Oklahoma. Yesterday, Oklahoma Forestry Services estimated 15% containment of the Rhea Fire Complex in Dewey County.
“Hay is the number one need right now,” explained Dana Bay, Woodward County Oklahoma State University Extension educator, in a statement from the Oklahoma Cattlemen’s Association (OCA) earlier this week. “Ranchers that were able to save their cattle but lost their grass and hay are in desperate need of hay to sustain those animals.”
Last week the Oklahoma Cattlemen’s Foundation (OCF) established a relief fund for cattle producers affected by the fires.
“We will coordinate with the Extension Offices in the affected areas to organize relief efforts and to identify ranchers that are in need,” explained Tiffani Pruitt OCF Coordinator.
You can find more information about donating hay or contributing to the relief fund at the OCA website.