Cattle Current Daily—Dec. 16, 2021

Cattle Current Daily—Dec. 16, 2021

Negotiated cash fed cattle prices lost some ground Wednesday. Live prices in the Texas Panhandle were $4 lower at $136/cwt., on slow trade and light demand, according to the Agricultural Marketing Service. Although too few to trend, there some early dressed sales in Nebraska $2 lower at $218.

Cattle futures sagged lower, pressured by softer cash prices and reports of reduced production at some plants due to weather.

Live Cattle futures closed an average of $1.05 lower (60¢ to $1.78 lower).

Feeder Cattle futures closed an average of $1.41 lower (83¢ to $1.93 lower).

Choice boxed beef cutout value was 46¢ lower Wednesday afternoon at $260.26/cwt. Select was  $1.35 lower at $247.45.

Corn futures closed 4¢ to 5¢ lower through Jly ’22, then down 1¢ to 2¢.

Soybean futures closed fractionally higher to 3¢ higher through Jly ’22, and then mostly 2¢ to 4¢ lower.

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Major U.S. financial indices closed higher Wednesday with a late-session surge.

The increase came amid news confirming the Fed will maintain its current lending rate but accelerate tapering of its bond buying program in light of higher inflation that appears to be more than transitory.

The Dow Jones Industrial Average closed 383 points higher. The S&P 500 closed 75 points higher. The NASDAQ was up 327 points.

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USDA’s Economic Research Service (ERS) increased the price outlook for next year in the latest Livestock, Dairy and Poultry Outlook.

ERS forecast next year’s annual average feeder steer price (basis 750-800 lbs. Oklahoma City) $3.50 higher than the previous month’s estimate at $159.00/cwt. The 2021 estimated annual average increased $1.25 to $146.80. So, next year’s annual average price is projected to be $12.20 more than in 2021.

The 2021 fourth-quarter forecast was revised $5 higher to $159 based on current price strength and improved prospects for winter grazing.

As for fed cattle, the average five-area direct fed steer price in November was $133.39/cwt., which was $9.06 higher than the previous month; $24.54 higher year over year.

ERS projected the average fourth-quarter fed steer price $5 higher at $133, based on continued demand strength and tighter supplies. The 2022 annual forecast also increased $5.00 to $135.00.

The forecast for 2021 beef production was raised on higher expected slaughter of fed cattle and slightly heavier carcass weights. December’s beef production forecast was 10 million lbs. more than the previous month at 27.895 billion lbs. Beef production for next year is forecast to be 27 billion lbs.

2021-12-15T20:05:37-06:00

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