Daily Market Highlights

Corn and Soybean futures bounced sharply higher Wednesday, fueled by the eroding crop conditions revealed in the weekly Crop Progress report and spawned by intensifying drought in the Corn Belt.

Corn futures closed mostly 20¢ to 31¢ higher through Sep ‘24 and then mostly 10¢ to 18¢ higher.

Soybean futures closed 23¢ to 37¢ higher through Aug ‘24 and then mostly 15¢ higher.

KC HRW Wheat closed mostly 27¢ to 37¢ higher.

Those gains cast a bearish shadow across Feeder Cattle futures, which closed an average of $3.67 lower ($2.92 to $4.42 lower).

Live Cattle faded most of the heat, supported by current cash premiums and despite lower cash fed cattle prices so far this week and recent sharp declines in wholesale beef values. Live Cattle closed an average of 34¢ lower, except for 12¢ and 5¢ higher in the front two contracts.

Keep in mind the monthly Cattle on Feed report comes out Friday.

Negotiated cash fed cattle trade ranged from limited on light demand to slow on light demand through Wednesday afternoon, according to the Agricultural Marketing Service.

So far this week, live prices are $2 lower in the Southern Plains at $180/cwt. and $2-$3 lower in the western Corn Belt at $184-$185, where dressed prices last week were $294-$300.

Although too few to trend, there were some live sales in Nebraska at $182-$185. Last week, live prices there were $185-$189 on a live basis and $296 in the beef.

Choice boxed beef cutout value was $2.66 lower Wednesday afternoon at $334.25/cwt. Select was $3.68 lower at $304.25/cwt.

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Major U.S. financial indices closed lower again Wednesday, pressured by hawkish interest rate comments from the Federal Reserve.

“Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” according to FOMC chair, Jerome Powell, in testimony to Congress. “But at last week’s meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the Committee to assess additional information and its implications for monetary policy.”

The Dow Jones Industrial Average closed 102 points lower. The S&P 500 closed 23 points lower. The NASDAQ was down 165 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.28 to $1.34 higher through the front six contracts.

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Rural economies are improving, according to the Creighton University Rural Mainstreet Index (RMI). It rose to 56.9 in June, the highest level since May of last year and marking the third consecutive month with a reading above growth neutral (50.0).

“After negative growth during the first quarter of this year, the Rural Mainstreet economy experienced positive, but slow, economic growth for all of the second quarter. Only 3.4% of bankers reported a downturn in economic conditions for the month,” according to Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

The RMI is based on a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Bank CEOs ranked Federal Reserve rate hikes as the greatest challenge in the 12 months ahead with rising bank regulations ranked as a distant second.

“Higher short-term interest rates produced by Federal Reserve rate hikes over the past year have posed a significant threat to community banks by expanding the costs of customer deposits while the rates on bank loans have risen little over the same time period,” Goss says.

Cattle futures started the trading week lower with pressure from last week’s weaker fed cattle prices, increasing feed costs, lower wholesale beef values and bearish outside markets.

Live Cattle futures closed an average of $1.49 lower ($1.02 to $2.02 lower).

Feeder Cattle futures closed an average of $2.25 lower ($1.47 to $2.77 lower).

Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $182/cwt. in the Southern Plains, $185-$189 in Nebraska and $186-$188 in the western Corn Belt. Dressed prices were $296 in Nebraska and $294-$300 in the western Corn Belt.

Choice boxed beef cutout value was $3.23 lower Tuesday afternoon at $336.91/cwt. Select was $2.83 lower at $307.93/cwt.

Corn and Soybean futures retained last week’s sharp gains on Tuesday as new-crop conditions erode (see below).

Corn futures closed mostly 2¢ to 6¢ higher.

Soybean futures closed mostly 1¢ to 7¢ higher.

KC HRW Wheat closed mostly narrowly mixed from 4¢ lower to 1¢ higher.

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Major U.S. financial indices closed lower Tuesday, led by energy stocks. That was despite positive economic news including more housing starts than expected.

Privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000, according to the U.S. Census Bureau. That was 21.7% more than the revised April estimate of 1,340,000 and 5.7% more than the May 2022 rate of 1,543,000.

The Dow Jones Industrial Average closed 245 points lower. The S&P 500 closed 20 points lower. The NASDAQ was down 22 points.

West Texas Intermediate Crude Oil futures (CME) closed 74¢ to $1.28 lower through the front six contracts.

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Nationwide, pasture and range conditions eroded a touch last week, according to the Crop Progress report from USDA’s National Agricultural Statistics Service.

For the week ending June 18, 44% of pasture and range was rated as Good (35%) or Excellent (9%), which was 1% less than the previous week but 11% more than a year earlier. 21% was rated as Poor (14%) or Very Poor (7%), which was 1% more than a week earlier but 21% less than a year earlier. States with more than 40% of pasture and range rated as Poor or Very Poor include: Illinois (42%); Michigan (56%) and Pennsylvania (48%).

Corn and soybean condition continued to deteriorate.

55% of corn was rated, Good (47%) or Excellent (8%) condition, compared to 61% the previous week and 70% the previous year. 12% was as Poor (9%) or Very Poor (3%), which was 4% more than previous week and 6% more than a year earlier.

54% of soybeans were rated in Good (47%) or Excellent (7%) condition, which was 5% less than the previous week and 14% less than the same week last year. 12% of soybeans were in Poor (9%) or Very Poor (3%) condition, versus 9% the previous week and 6% the previous year.

15% of winter wheat was harvested, which was 8% less than last year and 5% less than the average. 38% was rated in Good (32%) or Excellent (6%) condition, the same as a week earlier and 8% more than a year earlier. 29% was rated Poor (18%) or Very Poor (11%), which was 2% less than the previous week and 14% less than a year earlier. 

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $3-$4 lower in the Southern Plains at $182/cwt., $2-$5 lower in Nebraska at $185-$189 and $2-$4 lower in the western Corn Belt at $186-$188. Dressed prices were $4 lower in Nebraska at $296 and steady to $4 lower in the western Corn Belt at $294-$300.

The five-area direct weighted average fed steer price for the week was $3.83 lower at $184.92 on a live basis. The weighted average in the beef was $3.14 lower at $296.07.

Choice boxed beef cutout value was $2.95 lower Monday afternoon at $340.14/cwt. Select was 9¢ lower at $310.76/cwt.

Futures markets and equity markets were closed Monday in observance of Juneteenth.

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Despite recent week-to-week declines in Cattle futures, Andrew P. Griffith, agricultural economist at the University notes cash prices should remain strong based on fundamentals.

“The cattle supply is unchanged from expectations, but drought concerns across the Plains and much of the Midwest are resulting in higher corn prices, which means a higher cost of gain in the feedlot,” Griffith explains in his weekly market comments. “At the same time, there appears to be continued inflationary concern as consumers are still paying more at the grocery store. Thus, there are some real concerns that could drive the cattle market lower than its current mark.”

Even though prices may decline some, Griffith points out $200/cwt. for a steer weighing 800 pounds would still be an historically high price.

“If drought conditions persist in the Corn Belt and the Plains then there may be much tougher decisions ahead than when to sell a group of calves,” Griffith says. “It cannot not be stressed enough that producers should maintain good culling practices in the cow herd. Just as calf prices are strong, so are slaughter cows. Calf prices will never be high enough to retain a cow that should be culled based on the typical culling criteria.”

Cattle futures continued to bounce back Friday with another day of higher wholesale beef values and perhaps some positioning ahead of the long weekend.

Live Cattle futures closed an average of $1.26 higher. They were an average of 92¢ higher week to week.

Feeder Cattle futures closed an average of 71¢ higher (42¢ to $1.02 higher). Week to week on Friday, they closed an average of $3.56 lower ($3.20 to $4.07 lower).

That was with Corn and Soybean futures continuing to chug higher, riding the rails of drought worries.

Corn futures closed mostly 13¢ to 24¢ higher through Sep ‘24 and then mostly 9¢ to 11¢ higher. Week to week, they were an average of 58’9¢ higher through the front six contracts.

Soybean futures closed 31¢ to 50¢ higher through Aug ‘24 and then mostly 20¢ higher. Week to week on Friday, there were about $1.20 higher through the front six contracts.

KC HRW Wheat closed mostly 21¢ to 31¢ higher on Friday.

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Negotiated cash fed cattle trade remained largely undeveloped through Friday afternoon.

Although too few to trend, there were some live sales in the Southern Plains at $182/cwt. on limited trade and light demand, according to the Agricultural Marketing Service. Prices there the previous week were $185-$186.

Live prices in the western Corn Belt the previous week were $190 on a live basis and $298-$300 in the beef.

Established regional trade for the week occurred in Nebraska with live prices $5-$6 lower at $185 and dressed prices $4 lower at $296.

The five-area direct weighted average fed steer price was $186.78 on a live basis week to week on Thursday, which was $2.28 lower. The weighted average in the beef was $3.06 lower at $396.08.

Choice boxed beef cutout value was $1.02 higher Friday afternoon at $343.09/cwt. Select was $1.37 higher at $310.95/cwt. Week to week on Friday, Choice was up $10.16 and Select was $5.24 higher.

Estimated total cattle slaughter last week of 634,000 head was 18,000 head more than the previous week but 34,000 fewer than the same week last year. Year-to-date cattle slaughter of 15.0 million was 571,000 head fewer (-3.7%) than a year earlier. Estimated year-to-date beef production of 12.3 billion pounds was 623.5 million pounds less (-4.8%).

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Major U.S. financial indices closed lower Friday with likely profit taking ahead of the three-day weekend.

The Dow Jones Industrial Average closed 108 points lower. The S&P 500 closed 16 points lower. The NASDAQ was down 93 points.

West Texas Intermediate Crude Oil futures (CME) closed 96¢ to $1.16 higher through the front six contracts.

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USDA announced last week that it is ramping up efforts to strengthen the substantiation of animal-raising claims.

Animal-raising claims, such as “grass-fed” and “free-range,” are voluntary marketing claims highlighting certain aspects of how the source animals for meat and poultry products are raised. These claims must be approved by USDA’s Food Safety and Inspection Service (FSIS) before they can be included on the labels of meat and poultry products sold to consumers.

“FSIS has received several petitions, comments, and letters from a wide range of stakeholders asking the agency to reevaluate its oversight of animal-raising claims, specifically, how they are substantiated,” according to the announcement. “In addition, the veracity of “negative” antibiotics claims (e.g., “raised without antibiotics” or “no antibiotics ever”) has come into question.”

FSIS, in partnership with USDA’s Agricultural Research Service (ARS), will conduct a sampling project to assess antibiotic residues in cattle destined for the “raised without antibiotics” market. The results of this project will help inform whether FSIS should require that laboratory testing results be submitted for the “raised without antibiotics” claim or start a new verification sampling program.

FSIS will also be issuing a revised industry guideline to recommend that companies strengthen the documentation they submit to the agency to substantiate animal-raising claims. The agency plans to strongly encourage use of third-party certification to verify these claims.

Live Cattle futures edged higher Thursday, supported by higher wholesale beef values. Live Cattle closed an average of 25¢ higher, except for 10¢ lower in the back contract.

Negotiated cash fed cattle trade ranged from slow with light to moderate demand in the North to mostly inactive with very light demand in the South through Thursday afternoon, according to the Agricultural Marketing Service.

Although too few to trend, there were some early live sales in Nebraska at $185/cwt. and $188 in the western Corn Belt. There were a few dressed sales in Nebraska at $294.00-$296.50.

Last week, live prices were $185/cwt. in the Texas Panhandle, $186 in Kansas, $189-$192 in Nebraska and $190 in the western Corn Belt. Dressed prices were $300 in Nebraska and $298-$300 in the western Corn Belt.

Choice boxed beef cutout value was $3.01 higher Thursday afternoon at $342.07/cwt. Select was 32¢ higher at $309.58/cwt.

Feeder Cattle futures closed an average of $1.53 lower, pressured by significantly higher Corn futures prices and the related stall to improving conditions.

According to the latest weekly U.S. Drought Monitor (beginning June 13), drought conditions existed in 25% of the continental U.S. versus 22% a week earlier. For the same time period, 42% of cattle inventory was affected by the drought, which was 2% more than the previous week and 6% more than two weeks earlier.

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Corn futures roared higher mostly 12¢ to 25¢ higher Tuesday, fueled by expanding drought in the Corn Belt, with 57% of current corn production affected by drought, compared to 45% a week earlier and 34% two weeks earlier.

Corn received added support from the weekly U.S. Export Sales report (week ending June 8). Net U.S. sales for corn exports (2022-23) were 58% more than the previous week and noticeably higher than the prior four-week average.

Soybean futures closed mostly 27¢ to 50¢ higher.

Drought is affecting 51% of soybean production, compared to 39% a week earlier and 28% two weeks earlier.

Kansas City HRW Wheat futures closed 21¢ to 27¢ higher.

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Major U.S. financial indices rallied sharply higher Thursday with investors apparently emboldened that the Fed pausing interest rates could suggest an end to monetary tightening sooner rather than later.

The Dow Jones Industrial Average closed 428 points higher. The S&P 500 closed 53 points higher. The NASDAQ was up 156 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.30 to $2.36 higher through the front six contracts.

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USDA’s Economic Research Service (ERS) raised projected feeder steer prices (750-800 pounds, Oklahoma City) for the remainder of this year, in June’s Livestock, Dairy and Poultry Outlook. Forecast increases were based on recent price strength and improving summer grazing opportunities.

Prices were forecast $5 higher in the second quarter at $209/cwt., $10 higher in the third quarter at $224 and $6 higher in the fourth quarter at $226. The annual average price for this year was projected $6 higher at $227.

For reference, the highest recorded weekly price for feeder steers was $243.58/cwt. in October 2014, according to ERS.

“The ongoing story of tight cattle supplies combined with improving pasture conditions and lower year-over-year feed costs continues to push feeder cattle prices higher,” say ERS analysts. “Demand for limited supplies of feeder cattle remains strong. Feedlots are looking to fill their feedyards to take advantage of lower feed costs and the prospects for higher fed cattle prices, while recent rains have improved the drought situation in a few areas, likely creating some demand for cattle to go on grass.”

ERS projected the feeder steer price in the first quarter of 2024 at $222 with an annual average next year of $226.50.

As reported recently in Cattle Current, ERS raised the projected quarterly five-area direct average fed steer price $5-$9 for the remainder of the year to an annual average of $171.70/cwt.

Cattle futures closed sharply lower Wednesday, apparently driven by fund selling and likely pressure from outside markets.

Live Cattle futures closed an average of $2.53 lower ($1.97 to $2.95 lower).

Feeder Cattle futures closed an average of $4.35 lower.

Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $185/cwt. in the Texas Panhandle, $186 in Kansas, $189-$192 in Nebraska and $190 in the western Corn Belt. Dressed prices were $300 in Nebraska and $298-$300 in the western Corn Belt.

Choice boxed beef cutout value was $1.07 higher Wednesday afternoon at $339.06/cwt. Select was 22¢ lower at $309.26/cwt.

Corn futures closed 1¢ to 4¢ lower through Jly ‘24 and then mostly 1¢ higher.

Soybean futures closed mostly fractionally mixed.

KC HRW Wheat closed mostly 10¢ lower.

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Major U.S. financial indices closed mixed Wednesday after dropping sharply lower following the Federal Reserve’s decision to let current interest rates ride at its meeting this week, as expected. However, the nation’s bank also insinuated more hikes were likely to come later.

“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” according to an FOMC statement. “Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.”

The Dow Jones Industrial Average closed 232 points lower. The S&P 500 closed 3 points higher. The NASDAQ was up 53 points.

West Texas Intermediate Crude Oil futures (CME) closed 99¢ to $1.15 lower through the front six contracts.

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Rapid escalation of wholesale beef prices since Memorial Day suggests beef demand remains positive, according to David P. Anderson, Extension livestock economist at Texas A&M University.

“Beef production will continue to be lower than a year ago, supporting higher wholesale beef prices. Normally, beef production increases seasonally in the summer months,” Anderson explains, in the latest issue of In the Cattle Markets. “Even though production may increase from current levels, it will be below last year. Reduced beef production combined with positive beef demand has drawn down beef in cold storage dramatically since the first of the year. Since January cold storage beef stocks have declined 86 million pounds, or 16%.”

As mentioned recently in Cattle Current, estimated year-to-date beef production of 11.8 billion pounds last week was 592.5 million pounds less (-4.8%) than a year earlier.

“It would appear beef demand actually changed post-coronavirus, when compared to the previous time period,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “…In the short term, beef supply is being impacted by slaughter rates and slaughter weights. Total steer and heifer slaughter continue to run below year-ago levels, but strong boxed beef prices incentivize growing animals to a larger weight. In recent weeks, cattle dressed weights have been catching up to year-ago weights, and it is likely cattle feeders will attempt to push finished weights higher than last year’s weights. This is about the only way to influence beef production in the short term.”

Cattle futures faded pressure early in Tuesday’s session to closer higher.

Live Cattle futures closed an average of 70¢ higher (35¢ to $1.02 higher), except for 10¢ lower in the back contract.

Feeder Cattle futures closed an average of $1.12 higher.

Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $185/cwt. in the Texas Panhandle, $186 in Kansas, $189-$192 in Nebraska and $190 in the western Corn Belt. Dressed prices were $300 in Nebraska and $298-$300 in the western Corn Belt.

Choice boxed beef cutout value was 56¢ higher Tuesday afternoon at $337.99/cwt. Select was 76¢ lower at $309.38/cwt.

Deteriorating crop conditions helped boosted Corn and Soybean futures Tuesday. 

Corn futures closed mostly 1¢ to 2¢ higher.

Soybean futures closed mostly 18¢ to 30¢ higher.

KC HRW Wheat closed 2¢ to 4¢ lower through May ‘24, and then 1¢ to 3¢ higher.

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Major U.S. financial indices closed higher again Tuesday with further indications of easing inflation.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in May on a seasonally

adjusted basis, after increasing 0.4 percent in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 4.0% before seasonal adjustment.

The Dow Jones Industrial Average closed 145 points higher. The S&P 500 closed 30 points higher. The NASDAQ was up 111 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.26 to $2.30 higher through the front six contracts, supported by easing inflation and China’s cut in short-term interest rates, both bullish for demand.

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Cutter cow prices (90% lean) have been more than $90/cwt. on a live basis the past three weeks, the first time since 2015, according to the Livestock Marketing Information Center (LMIC).

“This year started with a price for cutter cows in the mid-$60s and has steadily climbed into midyear,” say LMIC analysts, in the latest Livestock Monitor.

Price spreads serve as another example of how steady demand relative to declining numbers are impacting value.

“The spread in price between cutter cows and other grades of live-priced cows has shrunken considerably this year,” according to LMIC analysts.  “Last year, the average spread between premium whites and cutter cows was just over $10/cwt. This year, the average is just under $4. The same is true for breakers (75% lean) and boners (85% lean). Breaker volumes are up 8% year to date, and the premium to cutters has averaged $6.77 versus the 2022 average of $10.61 per cwt. Boner graded cow volumes are up almost 400% from last year at this time, and the premium to cutters has averaged $4.84 per cwt this year. In 2022, the average was $7.01 per cwt.”

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, Live prices were $5-$10 higher in the Texas Panhandle at $185/cwt., $6-$8 higher in Kansas at $186, steady to $9 higher in Nebraska at $189-$192 and $3-$5 higher in the western Corn Belt at $190. Dressed prices were $8-$15 higher in Nebraska at $300 and $8-$10 higher in the western Corn Belt at $298-$300.

The weighted average five-area direct fed steer price last week was $188.75/cwt. on a live basis, which was $6.72 more than the previous week. The average fed steer price in the beef was $9.16 higher at $299.21.

Choice boxed beef cutout value was $4.50 higher Monday afternoon at $337.43/cwt. Select was $4.53 higher at $210.24/cwt.

Last week’s strong gains in cash fed cattle prices and wholesale beef values helped lift Live Cattle futures higher on Monday, dragging Feeder Cattle along.

Live Cattle futures closed an average of $1.24 higher.

Feeder Cattle futures closed an average of 50¢ higher.

Corn futures closed mostly 10¢ to 18¢ higher, apparently driven once again by the latest weather outlook in the Corn Belt — drier this time.

Soybean futures closed mostly 3¢ to 8¢ higher, except for lower in the front two contracts.

KC HRW Wheat closed mostly fractionally mixed through May ‘24, and then 3¢ to 4¢ lower.

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Major U.S. financial indices closed higher Monday with apparent optimism the Fed will skip raising interest rates at this week’s meeting as inflation eases.

The Dow Jones Industrial Average closed 189 points higher. The S&P 500 closed 40 points higher. The NASDAQ was up 202 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.66 to $3.05 lower through the front six contracts.

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Barring residual or redeveloping drought in key beef cow states, currently improving drought conditions and the onset of El Niño suggest beef herd liquidation is ending, according to Derrell Peel, extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. Nevertheless, he explains the beef cow herd will likely contract again this year.

“The first step to stabilizing the beef cow herd is the reduction of beef cow slaughter and a lower rate of cow culling,” Peel says. “Following record beef herd culling in 2022, beef cow slaughter is down 11.5% so far in 2023, a sign that herd liquidation is slowing.  However, I suspect that, until recently, the decrease in total beef cow slaughter was masking some continued liquidation in the drought areas of the plains… Beef cow slaughter is expected to decrease more sharply in the second half of the year.”

Definitive indication of herd expansion will come with increased heifer retention, according to Peel.

“Right now, no such signs exist, though I suspect that some heifer retention is beginning,” Peel says. “In fact, heifer slaughter thus far in 2023 is fractionally higher than last year’s elevated level. Of course, the reduced heifer feedlot placement that follows increased heifer retention will show up as lower heifer slaughter only after several months. The July Cattle inventory report may be the first sign that shows an increased inventory of beef replacement heifers. The report will be released July 21, 2023. Heifer slaughter is expected to start declining in the second half of the year.”

In the meantime, Peel notes the low inventory (Jan. 1) of replacement heifers — bred heifers calving this year and heifer calves to breed for calves in 2024.

“The bred heifer inventory is the lowest since 2011 and the inventory of replacement heifer calves is the lowest in the 23 years of data available,” according to Peel. “The number of replacement heifers is not enough to prevent more herd liquidation this year and likely not enough to do more than stabilize the beef cow herd in 2024. The big push for heifer retention will likely begin with weaning heifers this fall. These heifers will be bred in 2024, calve in 2025 and begin to increase beef production in 2026. It doesn’t seem possible to speed up the timeline.”

As herd expansion takes hold, reduced beef cow slaughter and increased heifer retention will pull beef production lower for a time.

“In the last herd expansion that began in 2014, total cattle slaughter in 2015 dropped to the lowest levels since 1963, resulting in the lowest beef production since 1993,” Peel explains. “We can expect analogous reductions in cattle slaughter and beef production in 2024 and 2025 at least. Increased heifer retention will pull feedlot inventories down sharply and keep them low for the expected three years of heifer retention that will be needed for the next herd expansion. With drought seemingly on its heels, the process of herd rebuilding is poised to begin.”

There was no afternoon negotiated cash fed cattle trade summary from AMS at press time but it sounded like feedlots in the Southern Plains were holding out for more money.

In the North, through Wednesday, dressed sales in Nebraska were $8-$15 higher at $300/cwt. and live sales in the western Corn Belt were $3-$5 higher at $190. Trade in the Southern Plains last week was at $175-$180.

Wholesale beef prices continued higher. Choice boxed beef cutout value was $3.54 higher Thursday afternoon at $328.73/cwt. Select was $2.54 higher at $304.10/cwt.

Both Live Cattle and Feeder Cattle futures closed an average of 90¢ lower, though bullish fundamentals remain.

Corn and Soybean futures closed higher with support from expanded drought coverage in the Corn Belt. Perhaps there was also positioning ahead of Friday’s World Agricultural Supply and Demand Estimates.

Corn futures closed mostly 3¢ to 5¢ higher.

Soybean futures closed mostly 10¢ to 12¢ higher.

KC HRW Wheat closed 14¢ to 18¢ higher, buoyed in part by Russia’s saber rattling over the Black Sea Initiative.

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Major U.S. financial indices closed higher Thursday with no apparent driver behind increased investor optimism.

The Dow Jones Industrial Average closed 168 points higher. The S&P 500 closed 26 points higher. The NASDAQ was up 133 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.07 to $1.24 lower through the front six contracts.

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April beef export value per head of fed slaughter was $441.70, the highest since last July, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

However, April beef exports were 10% below last year at 111,416 metric tons, while value fell 18% to $859.5 million.

Beef exports continued to gain momentum in Mexico in April, while exports also increased to South Korea, Europe and Africa. Exports to China/Hong Kong were relatively strong in April but shipments to Japan were down significantly.

Through the first four months of 2023, beef exports were down 8% in volume (437,910 mt) and were 21% lower in value ($3.21 billion) compared to last year’s record pace.

“With U.S. beef supplies tightening, it’s difficult to keep pace with the remarkable export totals posted in the first half of 2022, but exports continue to account for a similar share of production as last year’s record,” says Dan Halstrom, USMEF President and CEO. “The rebound in travel and tourism – which is now gaining momentum in Asia – and related foodservice opportunities continue to support beef demand. In some countries we have also seen a recent easing of the inflationary pressure on consumers’ discretionary income.”

Negotiated cash fed cattle prices continued higher Wednesday.

Dressed sales in Nebraska were $8-$15 higher at $300/cwt. on light trade and good demand. There were some early live sales at $188-$194, but too few to trend, according to the Agricultural Marketing Service. Live prices there last week were $183-$189.

Live sales in the western Corn Belt continued $3-$5 higher at $190 on light trade and good demand. Although too few to trend, there were some dressed sales at $300. Dressed prices there last week were $288-$292.

Trade in the Southern Plains was very limited on moderate to good demand with too few transactions to establish the market. Last week, live prices were $175-$180 in the Texas Panhandle and $178-$180 in Kansas.

Wholesale beef prices continued higher. Choice boxed beef cutout value was $3.79 higher Wednesday afternoon at $325.19/cwt. Select was $2.12higher at $301.56/cwt.

Even so, Cattle futures closed sharply lower amid likely technical selling and profit taking.

Live Cattle futures closed an average of $2.34 lower (82¢ lower in spot Jun to $2.82 lower).

Feeder Cattle futures closed an average of $3.76 lower ($2.72 lower at the back to $4.27 lower).

Another day and another forecast — wetter this time — pressured Corn and Soybean futures Wednesday.

Corn futures closed mostly 7¢ to 10¢ lower.

Soybean futures closed mostly 8¢ to 10¢ lower.

KC HRW Wheat closed 21¢ to 32¢ lower through Jly 24 and then 13¢ to 16¢ lower.

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Major U.S. financial indices closed mixed Wednesday with investors continuing to look for direction.

The Dow Jones Industrial Average closed 91 points higher. The S&P 500 closed 16 points lower. The NASDAQ was down 171 points.

West Texas Intermediate Crude Oil futures (CME) closed 79¢ to 83¢ higher through the front six contracts.

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Pasture and range conditions continued to improve last week, according to the Crop Progress report from USDA’s National Agricultural Statistics Service.

For the week ending June 4, 45% of pasture and range was rated as Good (37%) or Excellent (8%), compared to 43% the previous week and 28% a year earlier. 20% was rated as Poor (14%) or Very Poor (6%), versus 22% a week earlier and 43% a year earlier. States with more than 40% of pasture and range rated as Poor or Very Poor include: Kansas (45%), Missouri (47%) and Oregon (46%).

Corn condition slipped a little week to week.

96% of corn was planted, which was 3% more than the previous year and 5% more than the five-year average. 85% was emerged, compared to 76% last year and 77% for average. 64% was rated in Good (53%) or Excellent (11%) condition, compared to 69% the previous week and 73% the previous year. 6% was as Poor (6%) or Very Poor (1%), compared to 4% a year earlier, which was 1% more than previous week and 2% more than a year earlier.