Negotiated cash fed cattle prices took a strong step higher Thursday with moderate trade on moderate to good demand in the North, according to the Agricultural Marketing Service.
FOB live prices were mainly $10 higher at mainly $245/cwt. Dressed delivered prices in Nebraska were $13 higher at $385. Although too few to trend, there were some dressed delivered prices in the western Corn Belt at $380 to $385, compared to $372 the previous week.
Trade was limited on moderate demand in the Southern Plains. Although too few transactions to trend, there were some early FOB live prices at $245, which was $7 more than last week.
Choice boxed beef cutout value was $4.84 lower Thursday afternoon at $389.58/cwt. Select was $4.89 lower at $387.70.
Cattle futures shrugged off volatile outside markets and continued to rise Thursday, helped along by the positive cash market.
Toward the close, Live Cattle futures were an average of $1.27 higher. Feeder Cattle futures were an average of $2.60 higher.
Grain and Soybean futures were narrowly mixed.
Toward the close, and through near Dec contracts, Kansas City HRW Wheat futures were fractionally higher to 1¢ higher. Corn futures were fractionally lower to 2¢ lower. Soybean futures were 1¢ to 5¢ lower.
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Major U.S. financial indices were sharply lower Thursday in response to rising crude oil prices and President Trump’s remarks that the war with Iran could escalate. By the end of the day, though, indices were little changed on various reports that Iran was working with Oman on a plan that could reopen the Strait of Hormuz.
The Dow Jones Industrial Average closed 61 points lower. The S&P 500 closed 7 points higher. The NASDAQ was up 38 points.
Through mid-afternoon West Texas Intermediate Crude Oil futures (CME) were 88¢ to $11.55 higher through the front six contracts.
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Cattle prices peak this year and then decline through 2035 as the U.S. beef cow herd rebuilds, according to baseline projections in the recent U.S. Agricultural Market Outlook from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri.
FAPRI projects the beef cow herd growing from 27.6 million head at the beginning of this year to 31.2 million head in 2032 before declining to 30.4 million head by 2035.
As for prices, the five-area direct weighted average fed steer price declines throughout the projection period from a peak of $234.94/cwt. this year to $196.59 in 2030 and then $159.22 by 2034.
Likewise, prices for feeder steers weighing 600-650 lbs. and selling at Oklahoma City are projected to decline from a peak average of $382.89/cwt. this year to $302.12 in 2030 Ann unlimited to $237.17 in 2035.
As a backdrop, FAPRI estimate real GDP growth in the U.S. at 2.3% this year and then ranging between 1.7% and 1.9% for the remainder of the projection period. Real global GDP estimates are 2.7% this year and then ranging between 2.6% and 2.8%.