Negotiated cash fed cattle trade was moderate to active on good demand in the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service. Live prices were $2 higher at $142/cwt.
Although too few transactions to trend, live prices in Nebraska were $2-$3 higher at $142-$143 on slow trade and light to moderate demand. Dressed sales were $2 higher at $226.
Also too few to trend, there were a few live sales in the western Corn Belt steady to $3 higher at $141-$143. Dressed prices last week were $224.
Even so, Cattle futures mainly paddled in place.
Live Cattle futures closed an average of 18¢ higher.
Feeder Cattle futures closed an average 43¢ lower (10¢ to $1.27 lower) except for unchanged and 27¢ higher in the back two contracts.
Choice Boxed beef cutout value was 75¢ lower Wednesday afternoon at $269.62/cwt. Select was $1.74 lower at $266.08.
Corn futures closed 4¢ to 9¢ higher through May ’23 and then mostly 1¢ higher.
Soybean futures closed mostly 23¢ to 36¢ higher through Jan ’23 and then mostly 10¢ higher.
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Major U.S. financial indices mainly settled sideways Wednesday.
The Fed is maintaining the federal funds rate at 0% to 0.25% for the time being. But, according to a prepared statement:
“With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate. The Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March. Beginning in February, the Committee will increase its holdings of Treasury securities by at least $20 billion per month and of agency mortgage‑backed securities by at least $10 billion per month. The Federal Reserve’s ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to house-holds and businesses.”
The Dow Jones Industrial Average closed 54 points lower. The S&P 500 closed 3 points higher. The NASDAQ was down 15 points.
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USDA’s Economic Research Service publishes estimates of the wholesale and retail values of beef, pork, and poultry on its Meat Price Spreads data page. The graph below compares annual average values for composite Choice beef and pork, and broilers for the years 2020 and 2021. The wholesale value of Choice beef increased 61¢/lb., while the retail value increased 71¢. Pork and broiler retail values increased less than their wholesale values. Pork’s wholesale value increased 54¢/lb. while the retail value increased 48¢. The wholesale broiler value increased 17¢/lb. and its retail value 10¢.