A second consecutive day of sharply lower new-crop Corn futures prices helped Feeder Cattle futures roar an average of $3.87 higher.
Corn futures closed 17¢ to 22¢ lower through Jly ‘23, and then mostly 11¢ to 13¢ lower.
Soybean futures closed 4¢ to 7¢ higher through Jly ‘23 and then mostly 4¢ to 6¢ lower.
Live Cattle futures closed an average of $1.41 higher, from 25¢ higher at the back to $2.52 higher toward the front. That was despite the softer start to negotiated cash fed cattle prices this week of $2 lower in the Southern Plains at $135/cwt.
Live prices last week were $140 in Nebraska and $140-$142 in the western Corn Belt. Dressed prices were $223-$224 in Nebraska and $222-$227 in the western Corn Belt.
Choice Boxed beef cutout value was 12¢ lower Wednesday afternoon at $267.42/cwt. Select was 26¢ higher at $248.91.
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Major U.S. financial indices continued lower for the second consecutive session Wednesday.
The Dow Jones Industrial Average closed 399 points lower. The S&P 500 closed 57 points lower. The NASDAQ was down 86 points.
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Cattle feeders and other industry stakeholders would like to see the feeder cattle market become more objective in its pricing methods, according to a recent survey conducted by the Red Angus Association of America. Specifically, respondents to the survey believe the current emphasis on hide color needs to be replaced.
“These results portray the sentiment of the cattle feeding sector and many others involved in the beef industry,” says Tom Brink, RAAA CEO and administrator of the survey. “The logic of moving in the direction they desire certainly makes sense. A market that rewards objective value characteristics above superficial traits sends a strong signal for real improvement in feeder cattle quality and value.”
There is recognition by those surveyed that market emphasis on a black hide did help the beef industry improve historically, leading to higher-quality feeder cattle. However, survey data indicates 92% want changes for the future. Price discovery using specific genetic and genomic information on individual groups of feeder cattle can lead the industry in the direction of consistently better feeder cattle quality in the years ahead, and is preferred over hide color for that purpose.
“Going in the direction of genetics would be beneficial for producers and cattle feeders. It would open doors for both,” says survey participant Stacy McCasland, Palo Duro Feeders, Gruver, Texas.
Results indicate that cattle feeders want change in the way value is assigned. They seek a more objective market that establishes prices with little or no influence from hide color. Cattle feeders want pricing decisions based on value-oriented, objectively determined attributes, such as the genetic potential for growth, efficiency and carcass performance.