Short covering on Thursday, ahead of Friday’s monthly Cattle on Feed report appeared to be the main driver of firming Cattle Futures. Heading into the close Live Cattle futures were an average of $1.22 higher. Feeder Cattle futures were an average of $1.89 higher.
Negotiated cash fed cattle trade ranged from inactive on light demand to a standstill through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, FOB live prices are $2 lower in the Texas Panhandle at $183/cwt. and generally steady to $3 lower in the western Corn Belt at $187.50. Dressed delivered prices are $3-$6 lower in Nebraska at mostly $295 and $3 lower in the western Corn belt at $293-$295 in a light test.
Last week, FOB live prices were $185 in Kansas and $190 in Nebraska.
Choice boxed beef cutout value was 78¢ higher Thursday afternoon, at $315.99/cwt. Select was 95¢ higher at $302.03.
Grain and soybean futures were lower Thursday pressured by positive weather and yield estimates.
Heading into the close, through Jly ’25 contracts, Corn futures were 4¢ to 6¢ lower. Kansas City Wheat futures were mostly were 8¢ lower. Soybean futures were 18¢ to 22¢ lower.
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Major U.S. financial indices closed lower Thursday, pressured by tech stocks and rising treasury bond yield rates.
The Dow Jones Industrial Average closed 177 points lower. The S&P 500 closed 50 points lower. The NASDAQ was down 299 points.
At late afternoon, West Texas Intermediate Crude Oil futures on the CME were 72¢ to $1.05 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) lowered the expected third-quarter feeder steer price (750-800 lbs., Oklahoma City) by $2 to $261/cwt. in the August Livestock, Dairy and Poultry Outlook. That was based on recent price weakness. This year’s projected average also declined by $2 to $256.50. However, the estimated fourth-quarter average price of $268 was unchanged, as was next year’s projected average of $262.50.
As mentioned recently in Cattle Current USDA increased the projected the average five-area direct fed steer price for this year, based on recent demand for fed cattle that was stronger than expected. Compared to the previous month’s estimates, in the August World Agricultural Supply and Demand Estimates. ERS increased projected prices by $3 in the third quarter to $193/cwt. and by $2 in the fourth quarter to $190 for an annual average of $188.11, which was $1.25 higher.
This year’s beef production was projected 81 million pounds more than the previous month at 26.7 billion pounds, based on higher steer and heifer and cow slaughter, which more than offset lighter dressed weights.
ERS projected fed steer prices next year at $188 in the first quarter and $190 in the second quarter with an annual average price of $191.
Beef production for 2025 was lowered by 20 million pounds to 25.4 billion pounds, reflecting reduced steer and heifer slaughter in the first quarter. Next year’s projected total would be 1.3 billion pounds less (-4.8%) than this year’s projected total.