Cattle futures closed higher Thursday, supported by the prospects of steady to higher cash trade, as well as more favorable domestic economic growth than expected.
Before settlement, Live Cattle futures were an average of $1.01 higher across a wide range. Feeder Cattle futures were an average of 52¢ higher.
Negotiated cash fed cattle trade ranged from slow on light demand to inactive on very light demand through Thursday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were som early live FOB sales in Kansas at $190/cwt.
Last week, live FOB prices were $188-$188.50 in the Texas Panhandle, 187-188 in Kansas and $196 in the North. Dressed delivered prices were $310/cwt.
Choice boxed beef cutout value was 22¢ lower Thursday afternoon at $312.46/cwt. Select was $1.15 higher at $295.11/cwt.
Grain and Soybean futures were mixed Thursday.
Heading into the close, through Jly ’25 contracts Corn futures were mostly 3¢ higher. Soybean futures were mostly 13¢ to 15¢ higher as traders applied more weather premium. However, Kansas City Wheat futures were 6¢ to 7¢ lower on bullish harvest reports and anemic export sales.
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Major U.S. financial indices closed mixed Thursday, with continued pressure from tech stocks but with support from more robust economic growth than expected.
Real gross domestic product (GDP) increased at an annual rate of 2.8% in the second quarter this year, according to the “advance” estimate from the U.S. Bureau of Economic Analysis. The increase primarily reflected increases in consumer spending, inventory investment, and business investment. In the first quarter, real GDP increased 1.4%.
The Dow Jones Industrial Average closed 81 points higher. The S&P 500 closed 27 points lower. The NASDAQ was down 160 points.
Heading into the close, West Texas Intermediate Crude Oil futures on the CME were 23¢ to 57¢ higher through the front six contracts.
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Food price inflation is easing, according to data from USDA’s Economic Research Service (ERS). Although retail food prices rose 0.9% during the first half of this year, it was significantly less than the year-over-year increase of 4.8% at the same time last year and the 1.9% average increase from 2003 to 2022.
“Compared with recent years, price growth slowed across categories partly because of economy-wide factors, such as reductions in supply chain congestion and softening consumer demand for goods, although price trends differ by food category,” ERS analysts say. “For example, prices for cereals and bakery products showed minimal growth since mid-2023, following strong price increases throughout 2022 and the first half of 2023. In contrast, the midyear inflation rate for meats in 2024 exceeded its growth in the first half of 2023.”