Cattle futures were sharply lower Thursday, weighed down by wobbly cash trade, technical selling, bearish outside markets and lower wholesale beef values.
Before settlement, Live Cattle futures closed an average of $1.84 lower. Feeder Cattle futures were an average of $4.97 lower.
Negotiated cash fed cattle trade ranged from slow on light to moderate demand in the Southern Plains to slow on light demand in the North through Thursday afternoon, according to the Agricultural Marketing Service.
Although too few to trend, there were some early FOB live trades in the Southern Plains at $188/cwt.
Last week, FOB live prices were $190 in the Southern Plains, $198 in Nebraska and $196-$198 in the western Corn Belt. Dressed delivered prices were $312/cwt.
Choice boxed beef cutout value was $1.98 lower Thursday afternoon at $312.79/cwt. Select was $2.70 lower at $297.46/cwt.
Net U.S. beef export sales of 17,700 metric tons (2024) the week ending July 25 were 32% more than the previous week and 35% more than the prior four-week average, according to USDA’s weekly report. Increases were primarily for South Korea, Japan, Mexico and China.
Grain and Soybean futures were mixed Thursday.
Heading into the close, through Jly ’25 contracts, Corn futures were fractionally mixed. Kansas City Wheat futures were 5¢ to 7¢ higher on likely short covering. Soybean futures were 6¢ to 10¢ lower.
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Major U.S. financial indices fell hard Thursday, pressured by investor worries about a potential recession.
Weekly initial unemployment claims were higher than expected at 249,000. As well, the ISM manufacturing index was lower than expected in July, pointing to further economic contraction.
The Dow Jones Industrial Average closed 494 points lower. The S&P 500 closed 75 points lower. The NASDAQ was down 405 points.
Heading toward the close, West Texas Intermediate Crude Oil futures on the CME were 68¢ to $1.02 lower through the front six contracts.
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Although beef cow slaughter is 16% less year over year through the first 28 weeks of the year, the rate of slaughter is comparable to last year, relative to beef cow inventories, says James Mitchell, Extension livestock economist at the University of Arkansas, in the latest issue of Cattle Market Notes Weekly.
“One reason for the large decrease in beef cow slaughter is we started with fewer beef cows this year,” Mitchell explains. “Through 28 weeks, beef cow slaughter reflects 5.5% and 6.4% of beef cow inventories in 2024 and 2023, respectively. Beef cow slaughter is down 294,000 head, but we started the year with 716,000 fewer beef cows compared to 2023.”
Mitchell adds that lower beef cow slaughter this year also reflects improved forage conditions and higher cattle prices.