Cattle futures took a breather on Wednesday with likely profit taking and positioning ahead of Friday’s Cattle on Feed report.
Toward the close, Live Cattle futures were an average of 41¢ lower, except for 62¢ higher in spot Jun. Feeder Cattle futures were an average of 68¢ higher.
Negotiated cash fed cattle trade was mostly 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 $255-$256/cwt. in the Texas Panhandle, mostly $256 in Kansas and $255-$258 in the North. Dressed delivered prices were $403-$405.
Choice boxed beef cutout value was $5.08 lower Wednesday afternoon at $394.50/cwt. Select was 41¢ higher at $377.26.
Grain and Soybean futures were higher on Wednesday.
Toward the close, and through near Mar contracts, Corn futures were mostly 6¢ to 7¢ higher. Soybean futures were mostly 3¢ to 4¢ higher. Kansas City HRW Wheat futures were 18¢ to 19¢ higher.
******************************
Major U.S. financial indices closed lower Wednesday, pressured by increased Treasury yields, in response to the Fed’s suggestion they might increase interest rates later this year to battle inflation.
The Dow Jones Industrial Average closed 507 points lower. The S&P 500 closed 91 points lower. The NASDAQ was down 354 points.
Through mid-afternoon, West Texas Intermediate crude futures on the CME were 9¢ to 45¢ lower through the front six contracts.
******************************
USDA’s Economic Research Service (ERS) lowered expected feeder steer prices a touch for the remainder of this year, compared to the previous month, in the June Livestock, Dairy and Poultry Outlook.
Based on recent price data, the ERS lowered projected prices for 750-800 lbs., basis Oklahoma City, by $2 in the third and fourth quarters to $378/cwt. and $382, respectively. The forecast annual average price also declined $2 to $375.22. The first-quarter price next year was unchanged at $378.
As mentioned in Cattle Current last week, the ERS left the projected five-area direct average fed steer price unchanged for the remainder of this year, in the June World Agricultural Supply and Demand Estimates (WASDE). Forecast prices are $252/cwt. in the third quarter and $255 in the fourth quarter with an annual average price of $250.16. The first-quarter price next year was projected to be $250.
That was with beef production this year projected to be 109 million pounds less than last month (-0.4%) at 25.4 billion pounds. The total would be 565 million pounds less (-2.2%) than last year.