Cattle Current Daily—12-12-22

Cattle Current Daily—12-12-22

Higher wholesale beef values and some stronger cash prices in the North helped lift Live Cattle futures Friday, which drug Feeder Cattle along.

Choice Boxed beef cutout value was $1.65 higher Friday afternoon at $248.93/cwt. Select was 71¢ higher at $221.26/cwt.

Live Cattle futures closed an average of 84¢ higher (2¢ to $1.62 higher), except for 7¢ lower in the back contract.

Feeder Cattle futures closed an average of 29¢ higher.

Negotiated cash fed cattle trade was light to moderate on moderate demand in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. Prices were mixed with live sales in the Texas Panhandle steady to $2 lower at $153-$155/cwt. and steady to $1 higher in Kansas at $155-$156.

Trade was light on moderate demand in Colorado at steady money of $157.

Elsewhere, trade was light on light to moderate demand with too few transactions to trend. For the week, live prices were $1-$3 lower in Nebraska at $156 and steady in the western Corn Belt at $157-$158. Dressed prices were $1-$2 lower in Nebraska at $247 but steady in the western Corn Belt at $249.

Estimated total cattle slaughter last week was 652,000 head, which was 11,000 head fewer than the previous week and 16,000 head fewer than the same week last year. Estimated total year-to-date cattle slaughter of 31.95 million head was 443,000 more (+1.4%) than the same time last year. Year-to-date estimated beef production of 26.41 billion lbs. was 334.5 million lbs. more (+1.3%).

Corn futures closed mostly 1¢ to 2¢ lower, except for 1¢ to 2¢ higher in the front three contracts.

Soybean futures closed 2¢ lower through Aug ‘23, and then fractionally lower to 1¢ lower.

******************************

Major U.S. financial indices closed lower Friday with another set of data indicating stronger inflation than expected. The Producer Price Index for final demand advanced 0.3% in November, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. Final demand prices also rose 0.3% in both October and September.

The Dow Jones Industrial Average closed 305 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 77 points.

West Texas Intermediate Crude Oil futures (CME) closed 19¢ to 44¢ lower through the front six contracts.

******************************

USDA’s Economic Research Service left the projected five-area direct weighted average fed steer price unchanged in the December World Agricultural Supply and Demand Estimates (WASDE). Prices were forecast at $153/cwt. in the first quarter of next year, $154 in the second and $166 in the third quarter with an annual average price of $156. This year’s annual average price was projected at $144.15.

Estimated beef production for next year was unchanged at 26.27 billion lbs., which would be 2.14 billion lbs. less (-7.5%) than this year’s production of 28.42 billion lbs.

Among other WASDE highlights…

Corn

The 2022/23 U.S. corn outlook was for lower exports and increased ending stocks. Exports were lowered 75 million bu. from the previous month’s estimate as competition from other exporters and relatively high U.S. prices have resulted in slow sales and shipments through early December. Corn ending stocks were raised 75 million bu. The season-average corn price received by producers was lowered 10¢ to $6.70/bu. based on observed prices to date.

Soybeans

Soybean supply and use projections for 2022/23 were unchanged from last month. Based on a review of EPA’s recent proposed rule for renewable fuel obligation targets, soybean oil used for biofuel for 2022/23 was reduced 200 million lbs. to 11.6 billion. Soybean oil exports were reduced on historically low export sales through November. With reduced use of soybean oil for biofuel and exports, food use and ending stocks were raised. The U.S. season-average soybean price forecast was unchanged at $14.00.bu. The soybean oil price was lowered 1¢/lb. to 68¢. The soybean meal price forecast was increased $10.00 to $410.00/short ton.

Wheat

The 2022/23 U.S. wheat supply and use outlook was unchanged. The 2022/23 season-average farm price was forecast 10¢/bu. lower at $9.10, based on prices received to date and expectations for futures and cash prices for the remainder of 2022/23.

2022-12-10T19:23:29-06:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.