Negotiated cash fed cattle trade was slow to moderate on moderate demand in Nebraska through Wednesday afternoon, according to the Agricultural Marketing Service. Live prices were $2 lower at $140/cwt. and dressed prices were generally $3 lower at $222-$225.
Elsewhere, trade was limited on light demand with too few transactions to trend.
Earlier in the week, live prices were $1 lower in the Southern Plains at $137.
Last week, live prices were $142 in Colorado and the western Corn Belt. Dressed prices in the Western Corn Belt were $223-$227.
Choice Boxed beef cutout value was 72¢ lower Wednesday afternoon at $262.93/cwt. Select was $1.29 lower at $244.06.
Feeder Cattle futures eased an average of 33¢ higher, except for an average of 11¢ lower in two contracts, helped along by weaker Corn futures.
Live Cattle futures closed an average of 29¢ lower, except for an average of 34¢ higher in the back three contracts, struggling with lower cash prices and the likelihood seasonal beef prices are near the peak.
Grain futures were under pressure Wednesday, due to planting progress, China’s announcement that it will begin importing corn from Brazil and Russia’s announcement that it would allow grain exports from Ukraine in exchange for the easing of some current sanctions.
Corn futures closed mostly 2¢ to 7¢ lower.
Soybean futures closed 10¢ to 12¢ lower in old-crop contracts, 1¢ 4¢ lower through May ’23 and then mostly 1¢ higher.
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Major U.S. financial indices closed higher Wednesday, helped along by the release of FOMC minutes detailing domestic economic strength in the face of inflation.
The Dow Jones Industrial Average closed 191 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 170 points.
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“Despite the difference in regional prices, all cattle feeding regions are expected to see lower prices as the market moves into the summer,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “There will continue to be an ample supply of cattle for harvest the next few months, but there will soon come a time when market-ready supplies will dwindle and packers will have to compete for animals to hang on the rail. How quickly this situation presents itself is not known, but it will be sooner rather than later.”
In the meantime, Griffith points out commercial beef production through the first four months of this year totaled 9.35 billion lbs., which was 1.1% more year over year.
“The majority of this increase is from increased beef cow slaughter, Griffith explains. “Beef cow slaughter is 15.5% higher year to date compared to 2021 and is expected to remain elevated as drought continues to grip the western third of the United States.
“Increased heifer slaughter is also contributing to increased beef production as slaughter is up 1.7% compared to the same weeks in 2021, but the larger contributor is the heavier dressed weight of heifers, which are nearly 8 lbs. heavier than a year ago. Steer slaughter has decreased year to date compared to last year, but steer dressed weight is running nearly 10 lbs. heavier than a year ago. Increased beef production will pressure beef prices in the midst of this high inflationary period. Consumers will be forced to make decisions on discretionary spending that they have not had to make in several years.”