Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Thursday afternoon, according to the Agricultural Marketing Service. There were a few live FOB sales in the western Corn Belt at $188/cwt., but too few to trend.
Last week, live FOB prices were $178-$179/cwt. in the Southern Plains, $186 in Nebraska, and $185-$186 in the western Corn Belt. Dressed delivered prices were $292-$295.
Choice boxed beef cutout value was $1.17 lower Thursday afternoon at $302.01/cwt. Select was 84¢ higher at $278.31/cwt.
Cattle futures on Thursday mainly regained what was lost in the previous session as traders returned the focus to fundamentals rather than the selloff triggered by the downgrading of U.S. credit.
Live Cattle futures an average of 76¢ higher (12¢ to $1.17 higher).
Feeder Cattle futures closed an average of $1.35 higher.
Corn futures continued lower Thursday with the more favorable production outlook coupled with continued anemic international demand.
Corn futures closed 6¢ to 7¢ lower through May ‘24 and then mostly 2¢ to 3¢ lower.
KC HRW Wheat closed 9¢ to 19¢ lower.
Soybean futures closed mostly 3¢ to 5¢ higher.
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Major U.S. financial indices were little changed but softer again Thursday.
The Dow Jones Industrial Average closed 66 points lower. The S&P 500 closed 11 points lower. The NASDAQ was down 13 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.69 to $2.06 higher through the front six contracts.
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“Most of the decline in beef production compared to a year ago stems from reduced beef cow slaughter, steer slaughter, and lighter slaughter weights,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Beef cow slaughter is down more than 12% while steer slaughter has declined close to 5%. Alternatively, dairy cow slaughter has increased nearly 6% compared to a year ago due to declining milk prices.”
Griffith points out heifer slaughter is less 1% lower year over year, further affirming that fact that heifer retention has yet to begin.
“All of these points should support beef prices remaining elevated in the near term and in the longer term,” Griffith explains. He adds that “It will be interesting to see how imports are adjusting to meet the demand for lean grinding beef, given the production decline domestically.