Cattle Current Daily — Jan. 19, 2023

Cattle Current Daily — Jan. 19, 2023

Weaker Corn futures — mostly 1¢ to 4¢ lower — helped lift Feeder Cattle futures an average of 95¢ higher Wednesday (42¢ to $1.55 higher), except for 15¢ lower in spot Jan.

Live Cattle futures closed an average of 17¢ higher, except for an average of 10¢ lower in three contracts.

Soybean futures closed 13¢ to 19¢ lower.

Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand in the North through Wednesday afternoon, with too few transactions to trend. Trade was at a standstill in the Southern Plains, according to the Agricultural Marketing Service.

Last week, prices were $156/cwt. on a live basis in the Southern Plains, $156-$157 in Nebraska and $158 in the western Corn Belt. Dressed prices were $250-$252.

Choice boxed beef cutout value was $2.58 lower Wednesday afternoon at $274.08/cwt. Select was 67¢ lower at $253.86/cwt.

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Major U.S. financial indices closed lower Wednesday. Profit taking and less of a decline in wholesale prices than expected were likely part of the pressure

The Producer Price Index for final demand declined 0.5% in December, seasonally adjusted, according to the U.S. Bureau of Labor Statistics.

The Dow Jones Industrial Average closed 613 points lower. The S&P 500 closed 62 points lower. The NASDAQ was down 138 points.

West Texas Intermediate Crude Oil futures (CME) closed 40¢ to 70¢ lower through the front six contracts.

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Recent moisture is helping dial back dryness and drought in some areas.

According to the latest U.S. Drought Monitor (USDM-Jan. 10), abnormally dry and drought conditions impacted 66.5% of the lower 48 states. That’s the least since the week of Sept. 13 last year when those same conditions covered 66.2% of the country. Current conditions are also more favorable than the same week last year when abnormally dry conditions and drought covered 71.8% of the nation.

Approximately 57% of the nation’s cattle inventory was in areas experiencing drought versus about 69% a year earlier.

“A series of atmospheric rivers led to heavy rain and high-elevation snow across parts of the West, especially across California. Precipitation totals exceeding 4 inches (liquid-equivalent) were widespread, and several areas in and near the Sierra Nevada, Cascades, and coastal ranges recorded over one foot of precipitation,” according to the weekly Drought Summary.

USDM analysts note, “Precipitation totals generally exceeded 1.5 inches along the coast and in the higher elevations of the Pacific Northwest, some higher elevations in the central and northern Rockies, part of the upper Midwest, portions of the lower Mississippi Valley, the interior Southeast, and scattered locales across the Ohio Valley and the Northeast.

“Much of the precipitation fell on areas experiencing dryness and drought, so across the country, improvement was much more common than deterioration.” 

The latest La Niña Advisory from the National Weather Service Climate Prediction Center says there is an 82% chance North America transitions from La Niña to ENSO-neutral during February to April this year.

2023-01-18T17:57:54-06:00

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