Negotiated cash fed cattle trade and demand were moderate in the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service. Compared to last week, live sales traded $1 lower at $119/cwt.
Although too few transactions to trend, there was limited trade and light demand in Nebraska, where a few live sales traded at $122-$123, compared to $123-$125 last week.
Cattle futures, especially Feeder Cattle, gained Wednesday. It was tough to pinpoint any particular reason. Perhaps some of the support came from early positioning ahead of the Cattle on Feed and semiannual Cattle reports due out Friday.
Feeder Cattle futures closed an average of $1.12 higher.
Live Cattle futures closed an average of 48¢ higher.
Choice boxed beef cutout value was 36¢ higher Wednesday afternoon at $265.24/cwt. Select was 19¢ higher at $248.77/cwt.
Corn futures closed mostly fractionally higher to 2¢ higher.
Soybean futures closed mixed, down 1¢ to 4¢ in the front two contracts, then mostly 2¢ to 6¢ higher through Sep ’22 and then mostly fractionally higher to 7¢ lower.
Major financial indices closed higher driven by positive corporate earnings reports.
The Dow Jones Industrial Average closed 286 points higher. The S&P 500 closed 36 points higher. The NASDAQ was up 133 points.
Domestic beef demand continued higher year over year in May, according to the recently updated monthly Domestic Meat Demand Indices provided by Glynn Tonsor, agricultural economist at Kansas State University.
Specifically, the Choice Retail Beef Demand Index was 1.96% more than the previous year and the All-fresh Retail Beef Demand Index was 4.43% more.
Keep in mind, that’s amid continued strength in retail prices.
“The June all fresh beef price was $7.11/lb., down 1.2% from last year but the third highest level only behind record prices of June ($7.56) and May ($7.59) set last year during the pandemic,” say analysts with the Livestock Marketing Information Center (LMIC). “The Choice sirloin steak, beef for stew, and all uncooked beef steaks each set all-time high prices in June. Choice sirloin steak was $10.78/lb. rising 3.4% over last year, which was the prior record price at $10.42. Beef for stew and all uncooked beef steaks were $6.80 and $9.75/lb., respectively, beating the prior record prices set exactly one year ago.”
On the other end of the scale, ground beef prices decline 8.0% year over year in June to $4.36/lb., according to LMIC. Chuck roast and round roast both fell 7.4% and 5.1%, to $6.64 and $6.21/lb., respectively.
“Many of the retail beef price data for June last year were record prices, which led to some of the reported prices posting year-over-year declines,” LMIC analysts explain, in the latest Livestock Monitor.