Cattle futures eased lower Thursday, awaiting the week’s cash fed cattle direction and more bearish outside markets.
Toward the close, Live Cattle futures were narrowly mixed, from an average of 13¢ lower to an average of 23¢ higher. Feeder Cattle futures were an average of 63¢ lower, except for 10¢ higher in one contract.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Thursday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $245/cwt. in the Southern Plains, mostly $240/cwt. in Nebraska and $240-$242 in the western Corn Belt. Dressed delivered prices were $378.
Choice boxed beef cutout value was $1.08 lower Thursday afternoon at $364.84/cwt. Select was 45¢ higher at $363.03.
Grain and Soybean futures gained Thursday.
Toward the close, through near Sep contracts, Corn futures were 3¢ to 5¢ higher. KC HRW Wheat futures were 14¢ to 15¢ higher with likely technical buying. Soybean futures were 6¢ to 12¢ higher, buoyed by positive trade talks with China.
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Major U.S. financial indices closed lower Thursday with more investors reportedly concerned about how AI may take away from business rather than add.
The Dow Jones Industrial Average closed 669 points lower. The S&P 500 closed 108 points lower. The NASDAQ was down 469 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were $1.67 to $1.79 lower through the front six contracts.
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La Niña continues to weaken and is expected to dissipate by March, with a transitional phase most likely through spring and early summer, according to Matt Makens atmospheric scientist, who provided the weather outlook during the recent CattleFax Outlook Seminar in Nashville. “We’re watching a classic transition year unfold,” said. “Even as the ocean changes, the atmosphere typically takes four to eight weeks to respond, so weather impacts will lag.”
In the near term, drought risks remain elevated across the Southern U.S. and Central Plains, with a 70% chance of intensification, especially south of I-70 and west of I-35. Spring’s neutral setup may help moisture distribute more evenly, though lingering La Niña effects could still limit precipitation west of I-35.
Summer outcomes hinge on how quickly a potential El Niño develops, Makens explains. A fast forming El Niño could deepen drought in corn growing regions while increasing precipitation in the West, whereas slower development may support more balanced moisture. By fall, El Niño becomes increasingly likely, though global climate factors could still alter its typical impacts.
“El Niño isn’t a guarantee of rain for everyone,” Makens says. “Other global patterns can amplify or mute its influence, so close monitoring remains essential.”