Cattle futures closed sharply lower Thursday after early follow-through support, and all indications for higher cash fed cattle trade this week. There was no clear or even fuzzy reason for such a reversal.
Live Cattle futures closed an average of $2.48 lower through the front four contracts and then an average of $1.35 lower (92¢ to $1.70 lower).
Feeder Cattle futures closed an average of $2.12 lower ($1.65 to $2.55 lower), except for 30¢ lower in expiring Jan.
Choice boxed beef cutout value was $1.22 lower on Thursday afternoon at $206.77/cwt. Select 47¢ higher at $201.32.
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Cash bids for grains and soybeans were mixed on Thursday, according to the Daily National Grain Market Summary.
Wheat bids were mostly 1¢ to 3¢ higher. Sorghum bids were 2¢ lower. Soybean bids were mostly steady. Corn bids were 1¢ to 2¢ lower.
Corn futures closed fractionally lower to 1¢ lower.
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Major U.S. financial indices closed mixed on Thursday. Positive quarterly earnings reports provided support, including reports from Caterpillar and 3M.
The Dow Jones Industrial Average closed 140 points higher. The S&P 500 closed 1 point higher. The NASDAQ closed 3 points lower.
Commercial red meat production for the United States totaled 4.40 billion lbs. in December, up slightly from the previous December, according to the monthly Livestock Slaughter report released by the National Agricultural Statistics Service yesterday. Keep in mind that there was an extra workday during the months last year.
Beef production of 2.15 billion lbs. was 1% less than the the previous year. Cattle slaughter of 2.58 million head was also 1% less. The average live weight was 2 lbs. less than the previous year at 1,379 lbs.
Pork production was record high for the month at 2.23 billion lbs., up 1% from the previous year, although hog slaughter was slightly less at 10.5 million head. The average live weight was up 3 lbs. at 286 lbs.