Fed cattle markets were mixed on Wednesday.
Country trade in Kansas was $1 lower than last week on a live basis at $111/cwt., on moderate trade and demand, according to the Agricultural Marketing Service.
Likewise, $111 bought the 326 head offered in the weekly Fed Cattle Exchange auction: 243 head for delivery at 1-9 days and 83 head for delivery at 1-17 days.
At fat auctions in the north, though, prices were higher.
Slaughter steers and heifers sold fully $1 higher at Sioux Falls Regional in South Dakota: $115.35/cwt. for Ch 2-3 steers at an average of 1,400 lbs.
At the fat auction in Tama, Iowa Ch 2-4 steers sold $3.50-$4.00 higher at $118.50 and an average weight of 1,338 lbs. Choice heifers sold $3 higher.
Feeder Cattle led Cattle futures lower Wednesday, perhaps with some positioning ahead of Friday’s monthly Cattle on Feed report.
Live Cattle futures closed an average of 52¢lower.
After 47¢ lower in spot Aug, Feeder Cattle futures closed an average of $1.12 lower.
Corn futures closed fractionally higher to 1¢ higher.
Soybean futures closed mostly 4¢ to 5¢ lower.
Wholesale beef values were weak to lower on light demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 36¢ lower Wednesday afternoon at $212.57/cwt. Select was 82¢ lower at $188.34.
Major U.S. financial indices closed lower Wednesday, on mixed quarterly earnings and ongoing concerns about unresolved trade issues with China.
The Dow Jones Industrial Average closed 115 points lower. The S&P 500 closed 19 points lower. The NASDAQ was down 37 points.
Fed steer prices (5-area direct) declined 15% from the spring peak of $128.96/cwt. to $110.13 for the week ending June 30, according to USDA’s Economic Research Service (ERS), in the latest Livestock, Dairy and Poultry Outlook.
As mentioned recently in Cattle Current, based on recent price data, USDA lowered the expected third-quarter price for fed steers by $3, from the previous month’s forecast to an average of $107. The fourth-quarter price was reduced $4 to $110.
“As the result of lower forecast fed cattle prices and higher feed prices relative to last year in in second-half 2019, feedlots will likely be less willing to bid up prices for feeder cattle,” ERS analysts say. “Based on recent price data, the third-quarter feeder steer price (Oklahoma City) was lowered by $2 to $143/cwt. and the fourth-quarter price forecast was lowered $1 from the prior month to $141.
As a result, this month’s annual price forecast for 2019 was $1 lower at $141. The 2020 annual price forecast was unchanged.”