Cattle futures closed higher Wednesday, buoyed by higher outside markets and the positive outlook for cash prices this week.
Feeder Cattle futures closed an average of $1.56 higher ($1.22 to $2.50 higher). Live Cattle futures closed an average of 99¢ higher (57¢ to $1.30 higher).
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to slow on light to moderate demand, according to the Agricultural Marketing Service. Although too few to trend, there were some early live sales at $146/cwt. in Nebraska and the western Corn Belt and some early dressed sales in Nebraska at $229.
Last week, live prices were $135-$136/cwt. in the Texas Panhandle, $136 in Kansas, $140-$143 in Nebraska and $141-$147 in the western Corn Belt. Dressed prices were $227 in Nebraska and $225-$232 in the western Corn Belt.
Choice Boxed beef cutout value was $1.50 lower Wednesday afternoon at $263.23/cwt. Select was 62¢ lower at $237.08/cwt.
Corn futures closed mostly 3¢ to 4¢ higher. Soybean futures closed mixed but mostly fractionally higher to 3¢ higher.
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Major U.S. financial indices closed sharply higher Wednesday, fueled by one inflation gauge that was lower than expected.
The Consumer Price Index for all consumers was unchanged in July according to the U.S. Bureau of Labor Statistics. The index is up 8.5% over the last 12 months.
The Dow Jones Industrial Average closed 535 points higher. The S&P 500 closed 87 points higher. The NASDAQ was up 360 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.43 to $1.63 higher through the through the front six contracts.
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U.S. beef imports were 18.1% higher than last year through June but were 15.3% less year over year for the month of June at the lowest level since 2019, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He explains imports declined in the face of increased domestic cow slaughter and lean beef production.
On the other side of the scale, as mentioned in Cattle Current, U.S. beef exports through June were 6% more year over year for volume and 33% more for value, according to data released by USDA and compiled by the U.S. Meat Export Federation.
“Beef trade has been generally supportive thus far this year, but the future is uncertain,” Peel says. “Global and U.S. economic forecasts have been reduced as global economies continue to struggle. The U.S. dollar continues strong, which will be a headwind for future exports. U.S. beef production is expected to decline in the last part of the year and beyond reducing available beef supplies. All of these will likely impact beef trade going forward.”