Live Cattle futures closed higher Thursday, supported by firmer wholesale beef values and more reprieve in Corn futures.
Live Cattle futures closed average of 64¢ higher (17¢ higher at the back to $1.60 higher toward the front).
Feeder Cattle futures closed an average of 57¢ lower, except for an average of 75¢ higher in the front two contracts.
Negotiated cash fed cattle trade ranged from moderate on moderate demand in the North to mostly inactive on light demand in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service.
So far this week, FOB live prices are $2 lower in the Southern Plains at $180/cwt., steady to $2.50 lower in Nebraska at $180 and mainly steady in the western Corn Belt at $180-$181. Dressed delivered prices are unevenly steady in Nebraska at mostly $287 and steady in the western Corn Belt at $285 on a light test.
Choice boxed beef cutout value was $1.30 higher Thursday afternoon at $295.30/cwt. Select was $3.97 higher at $287.99/cwt.
Grain and Soybean futures continued to plumb for new lows Thursday as the lack of demand faces abundant supplies.
Corn futures closed mostly 5¢ to 7¢ lower.
KC HRW Wheat futures closed 11¢ to 14¢ lower.
Soybean futures closed mostly 10¢ to 14¢ lower through Sep ’25.
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Major U.S. financial indices continued to claw back early-week losses on Thursday, led by tech stock and supported by receding bond yields.
Advance estimates of U.S. retail and food services sales for January this year were 0.6% higher year over year but 0.8% lower month to month, according to the U.S. Census Bureau. That was much weaker than the trade expected.
The Dow Jones Industrial Average closed 348 points higher. The S&P 500 closed 29 points higher. The NASDAQ was up 47 points.
West Texas Intermediate Crude Oil futures (CME) closed 85¢ to $1.39 higher through the front six contracts.
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USDA projects commercial beef production this year to be 3% less year over year at 26.19 billion pounds.
“In the first part of the year, steer and heifer slaughter will reflect higher levels of cattle in feedlots but as the year progresses, marketings will decline as feedlot numbers diminish,” according to Shayle Shagam, livestock analyst with the World Agricultural Outlook Board. He provided the Outlook for Livestock and Poultry in 2024 at the Agricultural Outlook Forum taking place in Arlington, Va.
As for non-fed slaughter, Shagam says beef and dairy cow slaughter has been lower year over year so far in 2024 but may reflect the effects of winter weather on mid-January slaughter schedules.
“Nonetheless, with a smaller cow base, cow slaughter is expected to decline during the year, but reductions may also reflect improved forage conditions and strong calf prices which would support retention of cows as a precursor to any herd rebuilding,” Shagam says.
As mentioned in yesterday’s Cattle Current, USDA projects the average prices for a 750-800 lb. feeder steer selling at Oklahoma City record high at $248.50/cwt. USDA pegs the annual five-area direct average fed steer price for this year at $180/cwt.