Feeder Cattle futures gained on lower Corn futures, closing an average of 83¢ higher.
Live Cattle futures closed an average of 17¢ higher, except for unchanged to 17¢ lower in three contracts.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Wednesday afternoon.
Last week, prices on a live basis were $162 in the southern Plains, $159-$161 in Nebraska and $160-$162 in the western Corn Belt. Dressed prices were $257.
Choice boxed beef cutout value was 71¢ higher Wednesday afternoon at 287.91/cwt. Select was $2.80 higher at $273.64/cwt.
Wheat led the grain complex lower Wednesday with favorable domestic moisture, as well as chatter than the Baltic Sea export opening will be extended.
KC HRW Wheat closed 14¢ to 28¢ lower. Corn futures closed 3¢ to 6¢ lower through Jly ‘23 and then mostly fractionally lower to 1¢ lower. Soybean futures closed 5¢ to 9¢ lower through Sep ’23 and then mostly fractionally lower to 2¢ higher.
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Major U.S. financial indices closed narrowly mixed but maintained the losses from the previous session and the bearish tone, underscored by hawkish Federal Reserve minutes. In part, according to minutes from the most recent FOMC meeting:
“Participants noted that inflation data received over the past three months showed a welcome reduction in the monthly pace of price increases but stressed that substantially more evidence of progress across a broader range of prices would be required to be confident that inflation was on a sustained downward path.”
The Dow Jones Industrial Average closed 84 points lower. The S&P 500 closed 6 points lower. The NASDAQ was up 14 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.01 to $2.41 lower through the front six contracts.
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Cutter cow values of $77.47/cwt. the week ending Feb. 10 were the highest since October 2015, according to the Livestock Marketing Information Center (LMIC).
“Cow and bull harvest estimates in the middle of February indicate levels slipped 4% in the last 12 slaughter days from last year,” LMIC analysts explain, in the latest Livestock Monitor. “January total cow slaughter was largely above a year ago, however, the majority of the increase came from higher numbers of dairy cows, which are averaging more than 5,000 head higher per week than last year. Beef cow slaughter has been on either side of last year’s tallies.” At the time, they said cutter cow numbers were 24% higher year over year.
“Other grades of cows have not seen nearly the price spike that cutters have. Boners (85% lean) are still below last year’s summer levels at $79.76/cwt., as are breakers (75% lean) at $82.17,” LMIC analysts say. “Premium whites are ahead of last year at this time and were $79.10.”