Cattle Current Daily—July 13, 2022

Cattle Current Daily—July 13, 2022

Grain markets were the story once again on Tuesday, melting down beneath the weight of bearish outside markets, the climbing U.S. dollar, a more optimistic weather outlook and apparently little impact from the latest monthly World Agricultural Supply and Demand Estimates (WASDE-see below).

Corn futures closed 36¢ to 48¢ lower through Jly ‘23 and then mostly 15¢ to 19¢ lower.

Soybean futures closed 48¢ to 63¢ lower through Sep ’23, then mostly 38¢ to 43¢ lower.

Sharply lower Corn futures and strong cash demand boosted Feeder Cattle an average of $3.48 higher, (from $2.98 higher to $4.70 higher).

That and firm wholesale Choice beef value helped Live Cattle edge an average of 41¢ higher, except for unchanged and down 25¢ in two contracts.

Last week, live prices were $137/cwt. in the Southern Plains, $144-$149 in Nebraska and $147-$150 in the western Corn Belt. Dressed prices were $232.

Choice Boxed beef cutout value was 37¢ higher through Tuesday afternoon at $268.51/cwt. Select was 83¢ lower at $242.17/cwt.

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Major U.S. financial indices closed lower Tuesday, pressured by falling Crude Oil futures and investor uneasiness over Wednesday’s consumer inflation report.

The Dow Jones Industrial Average closed 193 points lower. The S&P 500 closed 36 points lower. The NASDAQ was down 108 points.

West Texas Intermediate Crude Oil futures on the CME closed $6.45 to $8.25 lower through the front six contracts.

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USDA’s Economic Research Service increased the forecast average fed steer price for this year $1.20 higher than the previous month at $141.30/cwt., in the monthly World Agricultural Supply and Demand Estimates (WASDE). That was based on prices reported in the second quarter and expected packer demand strength in the third quarter. Prices are forecast to be $139 in the third quarter and $145 in the fourth quarter.

The annual expected average fed steer price for next year was unchanged at $153.

Among other WASDE highlights:

Corn

The 2022-23 U.S. corn outlook was for larger supplies and 70 million bu. more ending stocks. Corn production was forecast 45 million bu. higher based on increased planted and harvested area from the June 30 Acreage report. Yield was unchanged at 177.0 bu./acre. The season-average farm price received by producers was lowered 10¢ to $6.65.

Soybeans

Soybean production was projected 135 million bu. lower at 4.5 billion bu. on lower harvested area — 2.6 million acres less than expected the previous month, based on the June Acreage report. Ending stocks for 2022-23 were projected 50 million bu. less at 230 million. The U.S. season-average soybean price was forecast 30¢ lower at $14.40/bu. The soybean meal price was projected $10 lower at $390/short ton. The soybean oil price was forecast 1¢ lower at of 69¢/lb.

Wheat

Supplies of 2022-23 U.S. wheat were raised 44 million bu. to 1,781 million based on increased harvested area and higher yields. The projected season-average farm price for wheat was lowered 25¢/bu. to $10.50 on declines in futures and cash prices.

2022-07-13T10:43:02-05:00

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