Cattle futures were lower Wednesday with likely profit taking, pressure from softer Choice boxed beef cutout values and the bounce in Corn futures.
Toward the close, Live Cattle futures were an average of $1.90 lower. Feeder Cattle futures were an average of $3.03 lower.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $201-$202/cwt. in the Southern Plains and $210-$212 in Nebraska and the Western Corn Belt. Dressed delivered prices were $328-$330 in Nebraska and $330 in the western Corn Belt.
Choice boxed beef cutout value was $1.91 lower Wednesday afternoon at $330.54/cwt. Select was $1.29 lower at $320.67.
Grain and Soybean futures were higher with South American weather premium, likely short covering, and despite looming potential Trump tariffs. Toward the close and through Sep ’25 contracts, Corn futures were mostly 6¢ to 11¢ higher. Kansas City Wheat futures were mostly 17¢ to 18¢ higher. Soybean futures were 14¢ to 15¢ higher.
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Major U.S. financial indices closed lower Wednesday in the wake of the Fed decision to pause interest rate cuts for now.
The Dow Jones Industrial Average closed 136 points lower. The S&P 500 closed 28 points lower. The NASDAQ was down 101 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 38¢ to 78¢ lower through the front five contracts.
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Slaughter cow prices are beginning their seasonal ascent, according to Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments.
“Some of the largest price advances on this class of animal will occur the next couple of months, but the price of slaughter cows will continue to grind higher into June and July,” Griffith says. “It is difficult to determine at this point if prices can move even higher in late summer, but slaughter cow prices will certainly remain strong through the latter portion of the summer months.”
As for calf prices, Griffith notes the relationship between steers and heifers bears watching, keeping heifer quality in mind.
“The price gap between the higher-quality heifers and steers will narrow if cattle producers decide to start rebuilding the cattle herd,” Griffith says. “If one is simply observing weekly weighted average prices, then heifers may be discounted more relative to steers when heifer retention takes place. This would occur because cow-calf producers are keeping a larger percentage of their best heifers, which means the quality of heifers being sold through the auction market may decline.”