Negotiated cash fed cattle trade remained undeveloped through Wednesday afternoon, but there were several suggestions for steady to higher trade.
For instance, Ch 2-4 steers traded at mostly $125-$128/cwt. at Sioux Falls in South Dakota.
As well, there were no takers, but three Kansas lots passed out at $125—steady with last week’s country trade—in the weekly Fed Cattle Exchange auction (785 head).
Cattle futures edged higher, too, especially Live Cattle, which closed an average of 46¢ higher, except for unchanged in the back two contracts.
Except for an average of 17¢ lower in the back two contracts, Feeder Cattle futures closed an average of 11¢ higher.
Corn futures closed mostly 1¢ to 2¢ higher.
Soybean futures closed 1¢ to mostly 2¢ higher.
Wholesale beef values were lower on light demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 78¢ lower Wednesday afternoon at $216.49/cwt. Select was $2.04 lower at $211.50.
Major U.S. financial indices continued to leak higher Wednesday, supported by release of last month’s minutes from the Federal Open Market Committee, which underscored patience relative to future increases in interest rates.
“Participants noted that some risks to the downside had increased, including the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions,” according to the minutes. “…a few participants expressed concern that longer-run inflation expectations may be lower than levels consistent with the Committee’s 2% inflation objective… Participants pointed to a variety of considerations that supported a patient approach to monetary policy at this juncture…”
The Dow Jones Industrial Average closed 63 points higher. The S&P 500 closed 4 points higher. The NASDAQ was up 2 points.
U.S. consumers paid higher year-to-year prices for beef last year, but less for pork and poultry, underscoring consumer demand.
According to USDA’s Economic Research Service (ERS), the retail Choice beef value last year was 0.25% more than the previous year at $5.92/lb. Pork retail value was 1% less than a year earlier at $3.74/lb. Composite broiler retail value was 0.15% less at an average of $1.87.
Between less cattle slaughter and lighter carcass weights, ERS’s latest projection for beef production last year is 26.9 billion lbs. For this year, it’s projected at 27.6 billion lbs.