Cattle futures extended gains Thursday, supported by the weeks higher cash fed cattle prices and despite some bearishness in the monthly World Agricultural Supply and Demand Estimates (see below).
Feeder Cattle futures closed an average of $1.35 higher.
Live Cattle futures closed an average of 94¢ higher.
Negotiated cash fed cattle trade ranged from moderate on moderate demand to slow on moderate demand, according to the Agricultural Marketing Service.
So far this week, FOB live prices are $1 higher in the Southern Plains at $183/cwt., $1-$2 higher in Nebraska at $185 and $2 higher in the western Corn Belt at $185.
Dressed delivered prices were $2-$4 higher in Nebraska at $292. Prices in the western Corn Belt last week were $290.
Choice boxed beef cutout value was 91¢ higher at $301.19/cwt. Select was 28¢ lower at $275.02/cwt.
Corn futures gained on the World Agricultural Supply and Demand Estimates (see below).
Corn futures closed 5¢ to 8¢ higher through May ’25 and then 2¢ higher.
KC HRW Wheat closed mostly 8¢ higher.
Soybean futures closed 29¢ to 37¢ higher through Aug ‘24 and then 18¢ to 22¢ higher.
Major U.S. financial indices sagged Thursday with a stouter inflation reading than expected.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in September on a seasonally adjusted basis, after increasing 0.6% in August, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.7% before seasonal adjustment.
The Dow Jones Industrial Average closed 173 points lower. The S&P 500 closed 27 points lower. The NASDAQ was down 85 points.
West Texas Intermediate Crude Oil futures (CME) closed 16¢ to 58¢ lower through the front six contracts.
USDA’s Economic Research Service (ERS) lowered expected fed steer prices (five-area direct) for this year and next, in the latest World Agricultural Supply and Demand Estimates (WASDE). The downward revision was based on September and early-October prices, and weaker expected demand for cattle during the fourth quarter of the year. Prices for next year were lowered with expectations of price pressure from larger feedlot supplies than previously projected.
The fourth-quarter price estimate was reduced $5 to $185/cwt. and the annual price was lowered $1.20 to $177.30. Next year’s annual price was projected $1 lower at $185.