Cattle futures hit new highs Wednesday and then reversed to close sharply lower with likely profit taking and skittishness over the overbought status and price levels.
Toward the close, Live Cattle futures were an average of $2.38 lower. Feeder Cattle futures were an average of $3.98 lower.
Negotiated cash fed cattle trade ranged from mostly inactive on moderate demand in the Southern Plains to limited on moderate demand in the North through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $218-$219/cwt. in the Texas Panhandle, $218-$220 in Kansas and $225-$228 in the North. Dressed delivered prices were $355.
Choice boxed beef cutout value was 74¢ lower Wednesday afternoon at $349.36/cwt. Select was $1.38 higher at $335.85.
Grain and Soybean futures were mixed again Wednesday.
Toward the close and through Mar ‘26 contracts, Corn futures were 1¢ lower to 2¢ higher. Kansas City Wheat futures were 9¢ to 11¢ higher. Soybean futures were mostly fractionally higher to 3¢ higher, except for 9¢ lower in spot May.
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Major U.S. financial indices closed mixed Wednesday.
The Dow Jones Industrial Average closed 89 points lower. The S&P 500 closed 6 points higher. The NASDAQ was up 136 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 74¢ to 87¢ lower through the front six contracts.
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The pace of beef cow slaughter through the first quarter — 20% less year over year at 8% of total slaughter — suggests this year’s national culling rate could drop to levels seen during the last herd expansion, according to Hannah Baker, University of Florida Extension beef and forage economics.
“Heifer slaughter is still too high, as of the April report, to indicate signs of retention,” Baker says in the latest issue of In the Cattle Markets from the Livestock Marketing Information Center. “However, the latest quarterly Cattle on Feed report indicated that the percentage of heifers on feed has declined to 38% of all cattle on feed and is expected to keep declining in the coming months.”
On the other hand, Baker points out drought and the ability to retain heifers remains a concern in some areas of the country.