Cattle futures were lower Wednesday with overbought conditions and some likely profit taking.
Toward the close, Live Cattle futures were an average of 79¢ lower. Feeder Cattle futures were an average of 92¢ lower.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $230/cwt. in Kansas and $225-$230 in Nebraska and the western Corn Belt. Dressed delivered prices were mostly $355 in Nebraska and $350-$355 in the western Corn Belt on a light test. There was no reported established trade in the Texas Panhandle.
Choice boxed beef cutout value was $2.79 lower Wednesday afternoon at $356.09/cwt. Select was $2.67 lower at $346.43.
Grain futures were higher on Wednesday, while Soybean futures continued looking for a bottom.
Toward the close, through near Jly, Corn futures were 3¢ to 4¢ higher. KC HRW Wheat futures were 2¢ higher. Soybean futures were 2¢ to 4¢ lower.
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Major U.S. financial indices closed lower Wednesday, led by tech stocks.
The Dow Jones Industrial Average was down 228 points. The S&P 500 closed 78 points lower and the NASDAQ was down 418 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.18 to $1.45 higher through the front six contracts.
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As of the end of last week, the comprehensive boxed beef cutout value had declined $40 from its peak of $409.20/cwt. the first week of September, according to Andrew P. Griffith, agricultural economist at the University of Tennessee, in is weekly market comments.
While the rib primal usually carries the cutout value during that period, Griffith notes rib value increased only about $13, from $630.76 to $643.29.
“The remaining six primal values have declined over that time period including chuck (-$69.97), round (-$69.01), loin (-$17.85), brisket (-$20.18), plate (-$20.56), and flank (-$55.04),” Griffith says. “The carcass is heavily weighted toward the chuck and round as they comprise a little more than 50% of the carcass. The loin comprises approximately 20% percent of the carcass while the rib is approximately 10% of the carcass. This means the entire carcass is being challenged.”