Cattle futures extended gains Wednesday, supported by supply fundamentals and the cash premium to Live Cattle futures.
Toward the close, Live cattle futures were an average of $1.47 higher. Feeder Cattle futures were an average of $3.56 higher.
Negotiated cash fed cattle trade was inactive on moderate demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $228-$230/cwt. in the Texas Panhandle, mostly $230 in Kansas, $240-$241 in Nebraska and mostly $240 in the western Corn Belt. Dressed delivered prices were $380.
Choice boxed beef cutout value was $4.87 lower Wednesday afternoon at $372.85. Select was $4.67 lower at $357.91.
Corn and Soybean futures gained Wednesday with support appearing to include weather premium on the outlook for elevated temperatures.
Toward the close and through away Jly contracts, Corn futures were mostly 4¢ to 5¢ higher. Kansas City Wheat futures were mostly fractionally higher to 1¢ higher. Soybean futures were 15¢ to 18¢ higher.
******************************
Major U.S. financial indices closed higher Wednesday following a turbulent trading session driven by political news.
The Dow Jones Industrial Average closed 231 points higher. The S&P 500 closed 19 points higher. The NASDAQ was up 52 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were mostly 2¢ to 9¢ lower through the front six contracts.
******************************
Bernt Nelson, American Farm Bureau Federation economist provides additional perspective to the U.S./Mexico border closure in the most recent issue of In the Cattle Markets from the Livestock Marketing Information Center.
“The U.S. imports 1.2-1.5 million head of cattle from Mexico every year. These are mostly feeder cattle destined for feedlots and ultimately beef production,” Nelson explains. “U.S. cattle slaughter was about 31.9 million head in 2024. In terms of production, 1.5 million head would be about 4% of 2024 slaughter. This is a significant portion of the market and while other fundamental factors like strong demand are currently having a bigger impact, this drop in supply will put upward pressure on cattle prices.”
Looking ahead, Nelson saysthe most recent World Agricultural Supply and Demand Estimates assumes the border will remain closed through the forecast period. Even so, he points out USDA’s Economic Research Service increased estimated beef production for next year by 540 million pounds, compared to the previous month’s projection, based on increased expected feedlot placements in the second half of this year.