Cattle futures were mixed to lower on Thursday with profit taking, the week’s lower negotiated cash fed cattle prices, weaker wholesale beef values and likely month-end position squaring.
Toward the close, Live Cattle futures were an average of 50¢ lower, except for 2¢ higher in away-Dec.
Feeder Cattle futures were narrowly mixed, from an average of 46¢ lower in four contracts to an average of 44¢ higher.
Negotiated cash fed cattle trade was light on moderate demand in the North through Thursday afternoon, according to the Agricultural Marketing Service.
Based on last established trade, FOB live prices are $2.50 to $5 lower than last week in Nebraska at $223-$226/cwt. and mostly $3-$5 lower in the western Corn Belt at $222-$224.
Dressed delivered prices in Nebraska are $10 lower at mostly $348 and $5-$10 lower in the western Corn Belt at $350-$360.
Choice boxed beef cutout value was $1.72 lower Thursday afternoon at $367.28/cwt. Select was $3.62 lower at $351.63.
Grain and Soybean futures were mostly lower on Thursday.
Through late afternoon, and through the front four contracts, Corn futures were unchanged to fractionally lower.
Kansas City HRW Wheat futures were fractionally lower to 1¢ higher with support from chatter about Chinese demand.
Soybean futures were mostly 2¢ to 4¢ lower.
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Major U.S. financial indices closed lower Thursday, pressured by corporate earnings reports and sticky inflation, although quarterly domestic economic growth was stronger than expected.
Real gross domestic product (GDP) increased at an annual rate of 3.4% in the third quarter, according to the advance estimate released by the U.S. Bureau of Economic Analysis (BEA). In the second quarter, real GDP increased 2.2%.
As for inflation, the personal consumption expenditures price index in September was 3.6% higher year over year, which was higher than expected.
The Dow Jones Industrial Average closed 132 points lower. The S&P 500 closed 23 points lower. The NASDAQ was down 365 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were 58¢ to $1.10 lower through the front six contracts.
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Estimated feedlot returns, on a cash-to-cash basis, are negative through April of next year, according to the most recent Historical and Projected Kansas Feedlot Net Returns.
Projected net returns for steers range from -$318.90 per head this month to -$60.19 in April. Estimated feedlot cost of gain ranges from $98.24/cwt. this month to a high of $108.09 in March.
Similarly, projected net returns for heifers range from -$241.41 per head this month to as low as -$61.28 in March. Estimated feedlot cost of gain ranges from $103.49/cwt. this month to a high of $114.92 in March.
Again, these projections reflect a cash market situation without implementing price risk management strategies. Also of note, the prior-year relationship between Nebraska and Kansas was used to approximate Kansas negotiated volume, weights and prices for weeks when negotiated transactions were not reported in Kansas due to Livestock Mandatory Reporting confidentiality rules.