Cattle futures lost ground Thursday, with likely profit taking, technical resistance and perhaps reaction to chatter about when cattle imports from Mexico might resume.
Negotiated cash fed cattle trade was active on good demand in Nebraska through Thursday afternoon, according to the Agricultural Marketing Service, with FOB live prices unevenly steady at $202-$205/cwt. and dressed delivered prices $2 higher at $322.
Trade was light to moderate on moderate to good demand in the western Corn Belt with FOB live prices steady to $3 higher at $203-$205. Dressed delivered prices last week were $320.
In the Southern Plains, trade was light on light demand with too few transactions to trend. For the week, dressed delivered prices are $1 higher in the Texas Panhandle at $201 and steady to $1 higher in Kansas at $201.
Choice boxed beef cutout value was 73¢ lower Thursday afternoon at $333.41/cwt. Select was $1.34 higher at $319.38.
Cattle futures lost ground Thursday, with likely profit taking, technical resistance and perhaps reaction to chatter about when cattle imports from Mexico might resume.
Toward the close, Feeder Cattle futures were an average of $1.95 lower. Live Cattle futures were an average of $1.36 lower.
Corn and Soybean futures were lower Thursday with likely producer selling and profit taking.
Toward the close and through Sep ’25 contracts, Corn futures were 4¢ to 6¢ lower. Kansas City Wheat futures were 9¢ lower. Soybean futures were 19¢ to 22¢ lower.
******************************
Major U.S. financial indices closed lower Thursday with pressure from tech stocks.
The Dow Jones Industrial Average closed 68 points lower. The S&P 500 closed 12 points lower. The NASDAQ was down 172 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 79¢ to $1.36 lower.
******************************
USDA’s Economic Research Service (ERS) increased forecast feeder steer prices for most of this year, in the January Livestock, Dairy and Poultry Outlook.
Compared to the previous month, ERS projected the average feeder steer price $3 higher in the first quarter at $268/cwt. and $2 in the second quarter at $272. The third-quarter projection was unchanged at $275. The forecast annual average price increased $1.25 to $273.25. Prices are basis Medium and Large #1 steers weighing 750-800 lbs. and selling at Oklahoma City.
As in the previous report, price projections assume the ongoing suspension of cattle imports from Mexico, since no date has been established for resumed trade.
ERS analysts explain, cattle have not been imported from Mexico since Nov. 22, which has limited feeder cattle typically available to feedlots in the Southern Plains. They say These feedlots are likely drawing down on supplies from other U.S. areas, boosting feeder calf prices.
As mentioned in Cattle Current last week, the ERS increased expected five-area direct average fed steer prices in the January World Agricultural Supply and Demand Estimates. Compared to the previous month, forecast prices increased $6 in the first quarter to $194/cwt., $5 in the second quarter to $194, $4 in the third quarter to $196, and by $5 for an annual average price of $196. Increase optimism stemmed from recent prices and continued strong beef demand.
“Wholesale beef prices finished 2024 on a strong note, carrying record beef prices into 2025,” ERS analysts say, explaining, “The strength of this wholesale beef price trend likely helped support record slaughter cattle prices through the holiday season.”