Live Cattle futures eased higher on Wednesday, bolstered by thoughts that negotiated cash fed cattle prices could increase this week, and despite bearish outside markets. Feeder Cattle futures wobbled, though, with resurgent Corn futures and perhaps positioning ahead of Friday’s Monthly Cattle on Feed report. Broadly, analysts see February placements on par year over year, February marketings down about 7.5% and the March 1 on-feed inventory down about 0.5%.
Toward the close, Live Cattle futures were an average of 66¢ higher. Feeder Cattle futures were an average of 47¢ lower, except for 12¢ higher in Oct.
Negotiated cash fed trade was inactive on light demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $235-$236/cwt. on a light test in the Texas Panhandle and mostly $235 elsewhere. Dressed delivered prices in the North were mainly $372.
Choice boxed beef cutout value was $1.56 lower Wednesday afternoon at $401.75/cwt. Select was 55¢ lower at $396.17.
Grain and Soybean futures were higher Wednesday, supported by higher crude oil prices and likely inflationary buying.
Toward the close, and through near Sep contracts, Kansas City HRW Wheat futures were 18¢ higher. Corn futures were 9¢ higher. Soybean futures were 6¢ to 11¢ higher.
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Major U.S. financial indices closed lower Wednesday, buffeted by rising crude oil futures, a negative inflation reading and comments by the FOMC in its announcement to leave interest rates unchanged.
First, the Producer Price Index for final demand increased 0.7% in February, seasonally adjusted, according to the U.S. Bureau of Labor Statistics, which was significantly higher than expected. On an unadjusted basis, the index for final demand rose 3.4% for the 12 months ended in February, the largest 12-month advance since increasing 3.4% in February 2025.
Next, according to Fed Chair Jerome Powell, in press-conference comments, “Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2% percent longer-run goal. Estimates based on the Consumer Price Index and other data indicate that total PCE prices rose 2.8% over the 12 months ending in February and that, excluding the volatile food and energy categories, core PCE prices rose 3.0%. These elevated readings largely reflect inflation in the goods sector, which has been boosted by the effects of tariffs. Near-term measures of inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by supply disruptions in the Middle East.
The Dow Jones Industrial Average closed 768 points lower. The S&P 500 closed 91 points lower. The NASDAQ was down 327 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $3.52 to $4.06 higher through the front six contracts.