Cattle futures drifted Wednesday as traders awaited cash direction. Likely, there was added hesitancy ahead of Friday monthly Cattle on Feed report. Estimates see placements being 8% less year over year and marketings down 12% for an April 1 inventory about 2% higher.
At the close and before final settlement, Live Cattle futures mixed, from an average of 28¢ lower in the front four contracts to an average of 27¢ higher. Feeder Cattle futures were an average of 24¢ lower, except for 15¢ higher in spot Apr.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $182/cwt. in the Southern Plains, $184 in Nebraska and $185 in the western Corn Belt.
Dressed delivered prices were $3-$4 lower in Nebraska at $293 and $4 lower in the western Corn Belt at $293.
Choice boxed beef cutout value was $1.24 lower Wednesday afternoon at $296.78/cwt. Select was $1.76 lower at $290.88/cwt.
Turning to row crops toward the close, Corn futures were mostly 2¢ lower through Dec ‘25. Kansas City Wheat futures were mostly 8¢ to 13¢ lower through Jly ’25. Soybean futures were 1¢ to 4¢ higher through Jan ’25.
******************************
Major U.S. financial indices closed lower Wednesday, led by tech stocks.
The Dow Jones Industrial Average closed 45 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 181 points.
West Texas Intermediate Crude Oil futures (CME) was 5¢ to 20¢ higher through the front six contracts.
******************************
USDA’s Economic Research Service (ERS) raised the expected second-quarter feeder steer price by $3 to $250/cwt. in the latest monthly Livestock, Dairy and Poultry Outlook. The increase was based on recent price data and stronger first-quarter placements leaving fewer calves available for placement in the second quarter.
Compared to the previous month, price expectations (basis 750-800 lbs., Oklahoma City) were little changed for the rest of this year: $261 in the third quarter and $267 in the fourth quarter for an annual average price of $254.46.
As mentioned in Cattle Current last week, ERS increased projected five-area direct average fed steer prices for the remainder of this year in the monthly World Agricultural Supply and Demand Estimates.
Compared to the previous month, based on recent data and expected strength in demand, forecast prices increased $2 in the second quarter to $185/cwt., $2 in the third quarter to $184 and $4 in the fourth quarter to $190. The annual average price increased $2 to $185.
That was with beef production estimated 130 million pounds more at 26.5 billion pounds. Forecast production was raised on heavier weights and increased slaughter.
“Despite concerns in the futures market, cash prices remain strong, and prices may have peaked sooner than normal, but fundamentals remain for slaughter to increase in the second quarter,” ERS analysts say.