Cattle Current Daily—Jan. 4, 2023

Cattle Current Daily—Jan. 4, 2023

Cattle futures struggled to a narrowly mixed close Wednesday, pressured by lower outside markets and falling wholesale beef values through much of the session. Stronger cash fed cattle prices added support later.

Feeder Cattle futures closed mixed, from an average of 19¢ lower to an average of 43¢ higher.

Live Cattle futures closed mixed, from an average of 12¢ lower in three contracts to an average of 25¢ higher.

Negotiated cash fed cattle trade was slow on light demand in the North through Wednesday afternoon, according to the Agricultural Marketing Service.

FOB live prices were $2-$3 higher in Nebraska at $175/cwt., where dressed delivered prices were $2 higher at $275.

FOB live prices in the western Corn Belt were $3 higher at $175. Dressed delivered prices there last week were $273.

Trade was at a standstill in the Southern Plains where FOB live prices last week were $172.

Choice boxed beef cutout value was $6.31 lower Wednesday afternoon at 278.03/cwt. Select was 1¢ lower at $258.85/cwt.

Corn futures closed mostly fractionally mixed to 1¢ higher.

KC HRW Wheat futures closed 4¢ to 7¢ lower through May ’25 and then 1¢ higher.

Soybean futures closed mostly 1¢ to 4¢ higher.

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Major U.S. financial indices closed lower Wednesday. Part of the pressure appeared to be investor disappointment in the latest Fed minutes offering no clarity about the timing of interest rate cuts.

The Dow Jones Industrial Average closed 284 points lower. The S&P 500 closed 38 points lower. The NASDAQ was down 173 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.00 to $2.32 higher through the front six contracts.

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Overall drought conditions continue to improve, according to the last U.S. Drought Monitor of 2023 (Dec. 26). At the time, 45.7% of the continental United States was free of abnormal dryness or drought conditions. That was true of 26% of the nation a year earlier. Spun differently 34% of cattle were in areas affected by drought at the end of 2023. A year earlier, 61% of cattle were in drought areas.

At the end of December, there was a 54% chance of a historically strong El Niño during the current November-January season, according to the National Weather Service Climate Prediction Center. As well, current conditions suggest it could be among the five strongest El Niños recorded since 1950, according to the most recent El Niño advisory. There is a 60% chance the current El Niño will transition to neutral conditions in the April-June timeframe.

2024-01-03T19:53:40-05:00

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