Cattle futures, especially Feeder Cattle bounced back Thursday with positive weekly export sales and supported by a rally in Lean Hog futures.
Feeder Cattle futures closed an average of $2.09 higher ($1.07 to $2.52 higher).
Live Cattle futures closed an average of 65¢ higher.
Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Thursday afternoon, according to the Agricultural Marketing Service.
The only established trade so far this week is in Nebraska, albeit on a light test. FOB live prices are $1-$3 lower at $168/cwt. and dressed delivered prices are steady to $4 lower at $267-$268.
Last week, FOB live prices were $171 in the Southern Plains and $168-$171 in the western Corn Belt where dressed delivered prices were $268-$270.
Choice boxed beef cutout value was 68¢ higher at $292.32/cwt. Select was 95¢ lower at $258.26/cwt.
Net U.S. beef export sales for 2023 were 10,600 metric tons (mt) the week ending Dec. 7. Sales were noticeably higher than the previous week and 67% more than the prior four-week average, according to USDA’s weekly Export Sales report.
Increases were primarily for South Korea, Japan, Mexico, China and Canada. Net sales for 2024 were primarily for Japan, South Korea, Canada, Mexico and Chile.
Grain and Soybean futures closed little changed to higher, bolstered by weekly export sales.
Corn futures closed unchanged to fractionally mixed.
KC HRW Wheat futures closed mostly 2¢ higher.
Soybean futures closed 4¢ to 7¢ higher.
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Major U.S. financial indices rose Thursday with follow-through support and lower Treasury yields.
The Dow Jones Industrial Average closed 158 points higher. The S&P 500 closed 12 points higher. The NASDAQ was up 27 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.11 to $2.23 higher through the front six contracts.
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Compared to the previous month’s projections, USDA’s Economic Research Service (ERS) sliced anticipated feeder steer prices (750-800 lbs., Oklahoma City) in the latest monthly Livestock, Dairy and Poultry Outlook (LDPO).
“Estimated steer and heifer slaughter was slower than expected in November and early December, suggesting a slower pace of marketings for the month and lowering expectations for the quarter,” ERS analysts say. “On the other hand, placements of cattle were above a year ago for the month of October, and November weekly sales data, as well as weekly import data for feeder cattle, suggest November placements could also be relatively strong.” They note less heifer retention is likely supporting heavier placements.
ERS reduced the expected fourth-quarter price for this year by $10 to $230/cwt. and the annual average price by $2.50 to $218.61. For next year, projected prices were forecast $15 lower in the first quarter at $225, $12 lower in the second at $235 and $10 lower in the third at $250. The 2024 annual average price was reduced $10.50 to $241.75.