Cattle futures gained Wednesday, supported by positive outside markets.
Before settlement, Live Cattle futures were an average of 87¢ higher. Feeder Cattle futures were an average of $1.67 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $186/cwt. in the Texas Panhandle, $185-$187 in Kansas, mostly $193 in Nebraska and $190-$193 in the western Corn Belt. Dressed delivered prices were $305.
Choice boxed beef cutout value was $2.05 lower Wednesday afternoon at $314.88/cwt. Select was 11¢ lower at $300.50/cwt.
Toward the close on Wednesday, through Jly ’25 contracts, Corn futures were 2¢ to 3¢ higher. Kansas City Wheat futures were 1¢ lower. Soybean futures were mostly 5¢ to 6¢ higher.
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Major U.S. financial indices maintained their strength Wednesday, supported one again by a tamer than expected inflation reading.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis in July, after declining 0.1% in June, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 2.9% before seasonal adjustment.
The Dow Jones Industrial Average closed 242 points higher. The S&P 500 closed 20 points higher. The NASDAQ was up 4 points.
Toward the close, West Texas Intermediate Crude Oil futures on the CME were slightly higher through the front six contracts.
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Calf numbers will be relatively tight this fall, and likely expensive, especially if there is wheat pasture to keep stocker demand strong, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
Plus, Peel explains feedlot cost of gain has declined and will likely decline further, giving feedlots wider berth to compete for stocker cattle amid limited supplies.
“Feedlots are expected to place some feeder cattle that are lighter weight than usual as they attempt to maintain feedlot inventories. In the current market environment, prices across the spectrum of feeder cattle prices by weight generally suggest that stocker producers are increasingly relegated to the small end of feeder cattle. The basic signal is for stocker producers to purchase lighter cattle and turn them over more quickly,” Peel says. “In general, the market signals are to move limited feeder cattle supplies through the system more intensively to keep beef production as high as possible with fewer cattle. This does not mean that other stocker programs, e.g. owning cattle longer and putting on more weight, will not work but will require careful planning at the outset.”