Cattle futures closed mostly higher Thursday despite the strike by workers at the Cargill beef packing plant in Fort Morgan, Colo., and with news that the Secretary of Agriculture cancelled her visit to the U.S.-Mexican border, which some had feared would feature an announced timeline for resuming Mexican feeder cattle imports.
Live Cattle futures closed an average of 76¢ higher. Feeder Cattle futures closed an average of 68¢ higher, except for 17¢ lower in spot Apr.
Negotiated cash fed cattle trade was moderate on good demand in Kansas and Nebraska through Thursday afternoon, according to the Agricultural Marketing Service. Trade was inactive on light demand in the Texas Panhandle and light to moderate on moderate to good demand in the western Corn Belt.
So far this week, FOB live prices are $2 lower at $246/cwt. and dressed delivered prices are $2 lower at $386.
Choice boxed beef cutout value was 69¢ lower Thursday afternoon at $383.50/cwt. Select was 75¢ lower at $382.58.
Grain futures were higher, led by Thursday with winter wheat weather premium.
Kansas City HRW Wheat futures closed 20¢ to 29¢ higher through May ‘27. Corn futures closed 1¢ to 2¢ higher. Soybean futures closed mostly 2¢ to 4¢ lower.
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Major U.S. financial indices closed lower Thursday, pressured by rising Crude Oil prices and softer software earnings report.
The Dow Jones Industrial Average closed 179 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 219 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.56 to $2.89 higher through the front six contracts.
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Projected feedlot net returns remain positive from April through July, according to the latest Historical and Projected Kansas Feedlot Net Returns from Kansas State University (K-State).
Estimated net returns for steers during the period range from $38.62 to $218.53 per head, with estimated feedlot cost of gain ranging from $95.36 to $100.66/cwt. During the same period forecast feedlot net returns for heifers range from $85.21 to $415.33 per head with estimated cost of feedlot gain ranging from $103.19 to $113.16/cwt.
“That is, market-ready fed steers and heifers slated to leave Kansas feedlots by July are projected currently to sell at sufficiently high prices, relative to costs of gain and earlier purchase of feeder cattle, that per head margins may remain positive,” according to Glynn Tonsor, K-State agricultural economist, in a recent issue of In the Cattle Markets.
Tonsor emphasizes the bullish outlook comes with caveats and reminders. Among them, he explains, “This series presumes an all-cash, no price risk management approach, leading to both projected highs and projected lows exceeding what is realized by parties regularly implementing price-mitigation strategies.”