Cattle futures wobbled Thursday, awaiting the week’s cash fed cattle direction while wholesale beef values continue their seasonal decline.
Toward the close, Live cattle futures were an average of 48¢ lower, except for 2¢ higher in the back contract. Feeder Cattle futures were mixed, from unchanged to an average of 34¢ lower in the front four contracts and then an average of 92¢ higher.
Negotiated cash fed cattle trade ranged from mostly inactive on moderate demand in the Texas Panhandle to limited on moderate demand in Kansas through Thursday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early FOB live trades in Kansas at $231/cwt. Last week, FOB live prices were $228-$230 in the Texas Panhandle and mostly $230 in Kansas.
In the North, trade was light on moderate demand.
There were some early dressed delivered sales in Nebraska steady at $380. Although too few to trend, there were some early FOB live trades $1-$2 higher at $242.
In the western Corn Belt, early live FOB trades were unevenly steady at $237-$240. Although too few to trend, there were some early dressed delivered sales, Steady at $380.
Choice boxed beef cutout value was 43¢ higher Thursday afternoon at $373.28. Select was $4.07 lower at $353.84.
Grain and Soybean futures were mixed Thursday.
Toward the close and through away Jly contracts, Corn futures were 2¢ to 3¢ lower with an apparent pause in short covering after recent weather premiums. Kansas City Wheat futures were 3¢ to 4¢ lower. Soybean futures were 6¢ to 8¢ higher.
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Major U.S. financial indices closed higher Thursday, buoyed by positive quarterly corporate earnings reports.
Positive news also included 7,000 fewer initial unemployment insurance claims week to week, according to the U.S. Department of Labor. Retail sales last month were also more than expected at $720.1 billion, up 0.6% month to month and up 3.9% year over year, according to the U.S. Census Bureau.
The Dow Jones Industrial Average closed 229 points higher. The S&P 500 closed 33 points higher. The NASDAQ was up 153 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 87¢ to $1.22 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) raised expected feeder cattle prices for the remainder of this year and next in the July Livestock, Dairy and Poultry Outlook, based on recent price data and continuation of the import ban on Mexican cattle.
Compared to the previous month, ERS increased the projected average feeder steer price $6 in the third and fourth quarters to $312/cwt. and $314, respectively for an annual average price $3.51 higher at $301.29. Estimated prices for the first quarter next year also increased $6 to $307 for an annual 2026 average price $6 higher at $312.25. Price are basis a Medium and Large #1 steer weighing 750-800 lbs., trading at Oklahoma City.
As mentioned in Cattle Current last week, the ERS left projected average five-area direct fed steer prices unchanged for the remainder of this year, compared to the previous month, in the July World Agricultural Supply and Demand Estimates (WASDE). Prices were forecast at $226/cwt. in the third quarter and $229 in the fourth quarter for an annual average of $221.31. Next year’s forecast annual average price was $229 with $227 in the first quarter.
That was with this year’s beef production estimated 170 million pounds less than the previous month at 26.2 billion pounds. The total would be 796 million pounds less (-2.9%) than last year.