Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, live prices are steady to $1 higher in the Texas Panhandle at $137and $1-$2 higher in Kansas at $137. Prices are steady to $1 higher in Nebraska at $137-$138. Although too few to trend, there were a few live trades in the western Corn Belt at $137, which was $1 lower. Dressed prices are steady at $218.
Cattle futures softened Thursday after follow-through support early in the session.
Live Cattle futures closed narrowly mixed, from an average of 17¢ lower in the front five contracts; unchanged to an average of 14¢ higher the rest of the way.
Feeder Cattle futures closed an average of 37¢ lower, except for unchanged to 75¢ higher in the back three contracts.
Choice Boxed beef cutout value was $1.38 higher Thursday afternoon at $292.98/cwt. Select was $1.75 higher at $282.18.
The average dressed steer weight the week ending Jan. 8 was 928 lbs., according to USDA’s Actual Slaughter Under Federal Inspection Report. That was the same as a week earlier but 5 lbs. heavier than the previous year. The average dressed heifer weight was 851 lbs., which was 4 lbs. lighter than the previous week and the same as a year earlier.
Weather in South America and tension between Russia and Ukraine continued to dominate grain market commentary Thursday.
Soybean futures closed 27¢ to 34¢ higher through the front four contracts and then mostly 9¢ to 15¢ higher.
Corn futures closed mostly 2¢ to 4¢ lower.
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Major U.S. financial indices rallied early in Thursday’s session but gave up the gains and more by the end of the day as investors come to grips with inflation and monetary tightening.
Seasonally adjusted initial unemployment insurance claims were 286,000 for the week ending January 15, according to the U.S. Department of Labor. That was 55,000 more than the previous week’s revised level. The four-week moving average was 231,000, an increase of 20,000 from the previous week’s revised average.
The Dow Jones Industrial Average closed 313 points lower. The S&P 500 closed 50 points lower. The NASDAQ was down 186 points.
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Retail beef prices moderated the last couple of months but continue at inflationary levels.
“December beef prices, all fresh and Choice, both declined for the second month in a row from record levels set in October. In December, the all fresh beef price was $7.35/lb., down 2.7% from the record price but 18.0% higher than a year ago,” say analysts with the Livestock Marketing Information Center (LMIC). “The December Choice beef price was $7.66/lb., down 3.0% from the October record price but 21.8% above a year ago. The round and sirloin in December were $7.34 and $11.05/lb., respectively, which was the third highest price for both cuts. Ground beef prices moved slightly lower from the prior month to $4.60/lb., which was the fourth highest on record and 16.5% above the prior year.”
In the latest Livestock Monitor, LMIC analysts explain the Food Consumer Price Index (CPI) in December was 6.3% higher year over year, the steepest annual increase since October 2008. The overall CPI was 7.0% higher, the most in about four decades.
“The Meat CPI rose 14.8% from a year ago, which slowed slightly from the prior month’s rate but is still at levels only seen during the pandemic and the late 1970’s,” LMIC analysts say.
The LMIC folks add that December pork prices were $4.74/lb., which was 15.0% more than a year earlier. The broiler composite retail price was record high at $2.22/lb., which was 10.4% more than the prior year.