Negotiated cash fed cattle prices bounced higher Thursday.
FOB live prices were $1.50 higher in the Texas Panhandle at $175/cwt., $2 higher in Kansas at $175, $2-$4 higher in Nebraska at $175-$177 and unevenly steady in the western Corn Belt at $174-$176. Dressed delivered prices $3-$4 higher in Nebraska at $277. Prices in the western Corn Belt last week were $273-$274.
Choice boxed beef cutout value was 82¢ lower Thursday afternoon at $298.68/cwt. Select was 61¢ higher at $287.85/cwt.
Stronger cash fed cattle prices and strong country demand for calves and feeder cattle helped push Cattle futures higher.
Feeder Cattle futures closed an average of $3.54 higher ($2.72 higher at the back to $4.40 higher in spot Mar), not counting Jan going off the board 20¢ higher.
Live Cattle futures closed an average of $1.53 higher (60¢ higher at the back to $2.37 higher in the front contract).
Turning to row crops, traders took some of the South American weather premium back out of Soybean futures, which closed mostly 10¢ to 17¢ lower.
Corn futures closed mostly 1¢ lower.
KC HRW Wheat futures closed 1¢ to 11¢ higher through May ’25 and then 2¢ lower.
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Major U.S. financial indices closed higher Thursday, supported by more bullish domestic GDP than expected. Real gross domestic product (GDP) increased at an annual rate of 3.3% in the fourth quarter of 2023, according to the “advance” estimate released by the Bureau of Economic Analysis. Real GDP increased 4.9% in the third quarter.
The Dow Jones Industrial Average closed 242 points higher. The S&P 500 closed 25 points higher. The NASDAQ was up 28 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.90 to $2.27 higher through the front six contracts.
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Food price growth slowed last year with less economy-wide inflationary pressure, fewer supply chain issues, and lower wholesale food prices, according to USDA’s Economic Research Service (ERS).
Food-at-home prices increased by 5.0% in 2023, much lower than the growth rate of 11.4% in 2022 but still double the historical annual average growth of 2.5% from 2003 to 2022, according to ERS.
Beef and veal prices rose 3.6% last year, more slowly than their historical averages. Pork prices declined 1.2%.
For broader perspective, the steepest price increases last year were 9.0% for fats and oils, 8.7% for sugar and sweets and 8.4% for cereal and bakery products.
ERS researchers project overall food-at-home prices will decrease 0.4% this year.