Cattle Current Daily—Feb. 6, 2024

Cattle Current Daily—Feb. 6, 2024

Cattle futures closed lower Monday on oversold conditions and likely profit taking as traders await this week’s cash direction.

Feeder Cattle futures closed an average of $1.89 lower.

Live Cattle futures closed an average of $1.19 lower.

Negotiated cash fed cattle trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were $3 higher in the Texas Panhandle at $178/cwt., $4 higher in Kansas at $178-$179, $1 to $1.75 higher in Nebraska at $176-$178.75 and steady to $5 higher in the western Corn Belt at $177-$179. Dressed delivered prices were $3 higher at $280.

Choice boxed beef cutout value was 40¢ higher Monday afternoon at $293.48/cwt. Select was 30¢ higher at $283.77/cwt.

Soybean futures closed 4¢ to 7¢ higher through Nov ’25.

Corn futures closed mostly fractionally higher to 1¢ higher.

KC HRW Wheat futures closed 8¢ to 11¢ lower.

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Major U.S. financial indices closed lower as Treasury yields climbed in response to expectations the Fed will be slower to cut interest rates amid the strong employment outlook.

The Dow Jones Industrial Average closed 274 points lower. The S&P 500 closed 15 points lower. The NASDAQ was down 31 points.

West Texas Intermediate Crude Oil futures (CME) closed 50¢ to 64¢ higher through the front six contracts.

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All cattle and calves in the U.S. inventory at the beginning of this year of 87.15 million head was the least since 1951, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University. He lends historical perspective of last week’s USDA Cattle report, in his weekly market comments.

The Jan. 1 beef cow inventory of 28.2 million head was 3.47 million head less (-10.9%) than the cyclical peak in 2019. Peel says, It’s the smallest beef cow herd since 1961.

As well, he explains, The top 10 beef cow states, represent 57.3% of total beef cows and accounted for 79.4% of the year over year decrease in total beef cow numbers. They accounted for 67.7% of the decrease from 2019 to 2024.

Beef replacement heifers on Jan.1 of 4.86 million head were 1.4% less year over year. However, Peel notes, “The 2023 beef replacement heifer inventory was revised down by 4.5% from the initial value reported one year ago.”

Estimated supply of feeder cattle outside feedlots of 24.2 million head was 4.2% less, representing the fewest in the 53 years, according to Peel, who explains

“The smaller cattle inventory is projected to result in a decrease of about 5% in total beef production to roughly 25.5 billion pounds in 2024.

Although That’s three times as much beef as was produced in 1951, the last time the total cattle inventory was this small; Peel says, the current ability to produce beef is smaller than market potential today and the industry will look to rebuild numbers and increase beef production when conditions allow.”  

2024-02-05T19:23:19-06:00

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