Although USDA’s Economic Research Service (ERS) surprised some by making yield adjustments in the latest World Agricultural Supply and Demand Estimates — those usually come later in the growing season — Corn futures fell with higher estimated ending stocks.
Corn futures closed 12¢ to 22¢ lower through Sep ‘24 and then mostly 7¢ to 9¢ lower.
Soybean futures closed mostly 25¢ to 32¢ lower.
KC HRW Wheat closed mostly 7¢ to 16¢ lower.
Even so, Cattle futures closed lower on the day following strong action earlier; perhaps driven by profit taking.
Feeder Cattle futures closed an average of $1.20 lower (57¢ to $1.42 lower).
Live Cattle futures closed an average of $1.48 lower (62¢ to $1.95 lower).
Negotiated cash fed cattle trade was inactive with very light demand in all regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $178/cwt. in the Southern Plains, $183.00-$186.50 in Nebraska and $182-$184 in the western Corn Belt. Dressed prices were $290.
Choice boxed beef cutout value was $1.14 lower Wednesday afternoon at $310.98/cwt. Select was 86¢ lower at $281.10/cwt.
Major U.S. financial indices closed higher again Wednesday with another signal of slowing inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in June on a seasonally adjusted basis, according to the he U.S. Bureau of Labor Statistics; it increased 0.1% in May.
The Dow Jones Industrial Average closed 86 points higher. The S&P 500 closed 32 points higher. The NASDAQ was up 158 points.
West Texas Intermediate Crude Oil futures (CME) closed 75¢ to 92¢ higher through the front six contracts.
USDA’s Economic Research Service projected the expected third-quarter fed steer price (five-area direct) $5 higher than the previous month to $178/cwt., and the fourth-quarter price $9 higher to $183, in the July World Agricultural Supply and Demand Estimates. The forecast annual price increased $3.60 to $175.30. Next year’s annual price was projected $4 higher at $184.
Price projections increased despite a bump in expected beef production due to higher expected steer, heifer, cow, and bull slaughter.
Specifically, forecast beef production for this year increased 75 million pounds from the previous estimate to 27.16 billion pounds. That would be 1.13 billion pounds less (-4%) than last year. Next year’s beef production was forecast to be a staggering 2.46 billion pounds less (-9.1%) that this year’s projected total at 24.7 billion pounds.