Overbought conditions, seasonally lower wholesale beef values, early cash fed cattle sales at lower money and the previous day’s surprisingly strong Consumer Price Index all weighed on Cattle futures Wednesday.
Feeder Cattle futures closed an average of $2.43 lower.
Live Cattle futures closed an average of $1.57 lower.
Negotiated cash fed cattle trade ranged from moderate on moderate demand to active on good demand in the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service. FOB live prices were $2 lower at $180/cwt.
Elsewhere, trade was slow on light to moderate demand with too few transactions to trend. Last week, FOB live prices were $180-$182.50 in Nebraska and $180-$182 in the western Corn Belt. Dressed delivered prices were $285-$289 in Nebraska and $285 in the western Corn Belt.
Choice boxed beef cutout value was $1.73 higher Wednesday afternoon at $294.00/cwt. Select was $1.28 lower at $284.02/cwt.
Queasiness over the release of the latest USDA projections helped take grain and Soybean futures lower.
Corn futures closed mostly 5¢ to 6¢ lower.
KC HRW Wheat futures closed mostly 7¢ to 9¢ lower.
Soybean futures closed 9¢ to 15¢ lower through Jly ’25 and then mostly 3¢ to 4¢ lower.
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Major U.S. financial indices rebounded Wednesday from the previous day’s sharp losses.
The Dow Jones Industrial Average closed 151 points higher. The S&P 500 closed 47 points higher. The NASDAQ was up 203 points.
West Texas Intermediate Crude Oil futures (CME) closed 98¢ to $1.23 lower through the front six contracts.
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Compared to prior-month projections, USDA’s Economic Research Service (ERS) increased expected feeder steer prices (750-800 lbs., Oklahoma City) for this year, in the February Livestock, Dairy and Poultry Outlook.
Based on current prices and lower anticipate feed prices, ERS increased the feeder steer price $9 in the first quarter to $234/cwt., $6 in the second quarter to $242, $5 in the third quarter to $255 and $5 in the fourth quarter to $256. ERS increased the expected annual average price for this year $6.25 to $248.50.
“Forage availability, as well as historically high prices for calves and cull cows, likely discouraged producers from retaining females in 2023,” ERS analysts say. “The culling rate of beef cows in 2023 was over 12% of the beef cow inventory on Jan. 1, 2023, the third highest rate behind 2011 and 2022.”
As reported recently in Cattle Current, ERS also increased projected five-area direct fed steer prices slightly for this year in the February World Agricultural Supply and Demand Estimates. Prices were projected at $176 in the first quarter, $180 in the second and third quarters and $184 in the fourth quarter. ERS increased the forecast annual five-area direct average fed steer price for this year by $2 to $180/cwt. Analysts say prices were raised on expected strength in first-half demand for fed cattle in the face of tightening feedlot numbers.