Negotiated cash fed cattle trade remained undeveloped through Thursday afternoon, with most indications for at least steady money this week.
Although there was pressure early in the session, Cattle futures closed mostly narrowly mixed in the Live pit and a touch higher for Feeder Cattle.
After 67¢ and 12¢ lower in the front two contracts, Live Cattle futures closed an average of 26¢ higher, except for 10¢ lower in away Dec.
Feeder Cattle futures closed an average of 51¢ higher.
Wholesale beef values were lower on Choice and steady on Select, with light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 75¢ lower Thursday afternoon at $204.04/cwt. Select was 3¢ lower at $197.24.
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Continued pressure from the latest World Agricultural Supply and Demand Estimates pushed cash bids for grains and soybeans lower Thursday, according to the Daily National Grain Market Summary.
Wheat bids were mostly 5¢ to 10¢ lower. Soybean bids were mostly 6¾¢ lower. Sorghum bids were 3½¢ lower. Corn bids were mostly 2¢ lower.
Corn futures closed 1¢ to 5¢ lower through next July and then mostly fractionally lower.
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Major U.S. financial indices closed higher Thursday. Support included tech stocks, led by Apple, as well as a slower rising Consumer Price Index (CPI) than expected. According to the Bureau of Labor Statistics, the CPI rose 0.2% in August. The index for all items less food and energy rose by 0.1%, the least since April.
The Dow Jones Industrial Average closed 147 points higher. The S&P 500 closed 15 points higher. The NASDAQ was up 59 points.
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Although current feedlot closeout projections are forecast to continue in negative triple digits this month, the most recent Historical and Projected Kansas Feedlot Net Returns suggests significant improvement on the horizon.
For example, estimated net return for steers closed out in August was -$104.20 per head. The estimate for September is -$108.96. For the next eight months after that, estimated returns range from -$63.24 in April to +$18.75 in March.
Keep in mind the projections are on a cash-to-cash basis without any price risk management assumed.
The outlook for heifers is similar. After projected losses of $105-$106 per head in August and September, estimated returns range from -$89.49 in April to +$24.04 in December.