Cattle futures were lower Wednesday. Part of it likely stemmed from rumors, yet again, about the reopening of the U.S. border to Mexican feeder cattle imports. Some profit taking ahead of Friday’s Monthly Cattle on Feed report could have also added pressure. Early estimates see March placements and marketings down 6-7% with the April 1 on-feed inventory slightly less year over year.
Toward the close, Live Cattle futures were an average of $1.16 lower, except for 12¢ higher in spot Apr. Feeder Cattle futures were an average of $3.76 lower.
Negotiated cash fed cattle trade was limited on moderate demand in the Texas Panhandle through Wednesday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some early FOB live trades at $248/cwt. Prices there last week were mostly $246.
Elsewhere, trade was inactive on light demand.
Last week, FOB live prices were $246-$249 in Kansas, $248-$249 in Nebraska and mostly $248 in the western Corn Belt. Dressed delivered prices were $388-$390 in Nebraska and mainly $388 in the western Corn Belt.
Choice boxed beef cutout value was $1.22 lower Wednesday afternoon at $381.98/cwt. Select was $1.22 lower at $378.58.
Grain and Soybean futures were firm to higher Wednesday.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were fractionally higher to 1¢ higher.
Corn futures were 8¢ higher, supported by short covering and potential weather premium on the planting outlook.
Soybean futures were 7¢ to 9¢ higher through near Nov.
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Major U.S. financial indices closed mixed Wednesday, but with growing investor optimism about an end to the war between the U.S. and Iran.
The Dow Jones Industrial Average closed 72 points lower. The S&P 500 closed 55 points higher. The NASDAQ was up 376 points.
Through mid-afternoon West Texas Intermediate Crude Oil futures (CME) were 8¢ lower to 47¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) left projected feeder steer prices unchanged for the remainder of this year in the April Livestock, Dairy and Poultry Outlook.
For Medium and Large #1 steers weighing 750-800 pounds and selling at Oklahoma National Stockyards, the average price was forecast at $367/cwt. in the third quarter, $369 in the fourth quarter and at $367.22 for the annual average.
The weighted-average price for that class and weight of steers in Oklahoma City was $366.16 in March — nearly $83 more year over year — according to ERS analysts.
“That differential adds up to over $600 per animal that feedlots paid for the same type of feeder cattle, compared with last year,” ERS analysts say. “It is worth noting that weekly prices in March had a relatively wide range, from $349.99 to $373.62/cwt., demonstrating broader market volatility.”
As mentioned in Cattle Current last week, the ERS also left projected five-area direct weighted average fed steer prices unchanged in the April World Agricultural Supply and Demand Estimates (WASDE). Prices were projected at $242/cwt. in the third quarter, $245 in the fourth quarter and at $242 for the annual average.
USDA projected beef production for this year at 25.8 billion pounds, which was 20 million pounds less than the previous month’s estimate. The total would be 211 million pounds less (-0.8%) than last year.