Cattle futures softened Thursday with the lack of negotiated cash fed cattle direction, positioning ahead of the three-day weekend and monthly Cattle on Feed report (see below), as well as potential profit taking.
Toward the close, Live Cattle futures were an average of $1.14 lower. Feeder Cattle futures were an average of 75¢ lower.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Thursday 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 58¢ lower Thursday afternoon at $393.92/cwt. Select was $2.51 lower at $374.75.
Grain and Soybean futures softened Thursday as traders positioned ahead of the Juneteenth holiday and without bullish news.
Toward the close, and through near Mar contracts, Corn futures were 3¢ to 4¢ lower. Soybean futures were 7¢ to 10¢ lower. Kansas City HRW Wheat futures were mostly 8¢ to 9¢ lower.
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Major U.S. financial indices closed higher Thursday, led by tech stocks.
The Dow Jones Industrial Average closed 72 points higher. The S&P 500 closed 80 points higher. The NASDAQ was up 496 points.
Through mid-afternoon, West Texas Intermediate crude futures on the CME were 27¢ to 63¢ lower through the front six contracts.
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Markets will likely view the monthly Cattle on Feed report as neutral to friendly with fewer placements than expected.
Feedlots with 1,000 head or more capacity placed 1.7 million head in May, which was 183,000 head fewer (-9.7%) than the same time last year and nearly 4% less than analyst estimates ahead of the report.
In terms of placement weights, 33% went on feed weighing 600 lbs. or less, 50% weighing 700-899 lbs. and 17% weighing 900 lbs. or more.
Marketings in May of 1.6 million head were 207,000 head fewer (11.8%) less, and 1% less than pre-report estimates.
Cattle on feed June 1 of 11.7 million head were 239,000 more year over year (2.1%), which was slightly less than expectations ahead of the report.