Only 306 head (two lots, one from Kansas and one from Nebraska) were offered in the weekly Fed Cattle Exchange Auction. All sold for a weighted average price of $106/cwt., which was $2-$3 less than country trade in those regions last week.
That $106 also matched country prices in those regions on Wednesday. There were a few early dressed sales in Nebraska at $169-$170, which was also $2-$3 less than the previous week.
Despite that and technical pressure, Cattle futures mostly paddled in place, on an average basis.
After $1.10 higher in spot June, Live Cattle futures closed narrowly mixed, from an average of 18¢ higher to an average of 12¢ lower.
Feeder Cattle futures closed an average of 38¢ lower (12¢ to 85¢ lower).
Boxed beef cutout values were weak to lower on light demand and light to moderate offerings through Wednesday afternoon, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.53 lower at $215.30/cwt. Select was 69¢ lower at $200.88.
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After surging sharply higher early in the session, major U.S. financial indices closed sharply lower Wednesday. Support included another day of strengthening oil prices. Drag came with ongoing trade tensions, a stronger U.S. Dollar and renewed fears of rising interest rates.
The Dow Jones Industrial Average closed 165 points lower. The S&P 500 closed 23 points lower. The NASDAQ closed 116 points lower.
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For cow-calf producers with access to cost-effective forage and feed, the current value of gain provides incentive to retain calves and add some pounds, says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments.
In his neck of the woods, projecting the forward price of steers purchased last week at 525 lbs. and carried to 600-800 lbs., Griffith says, the value of gain was 95¢ to $1.10/lb.
“The value of gain on the heifers appears to be slightly higher than the steers, which is largely due to less of a discount relative to steers as heifers add weight,” Griffith says.