Cattle closed mainly higher Thursday, supported by another day of bullish outside markets.
Live cattle futures closed an average of 90¢ higher. Feeder Cattle futures closed an average of 52¢ higher, except for an average of 6¢ lower in the back two contracts. From last Thursday to the previous Friday, Live Cattle futures closed an average of $1.06 higher and Feeder Cattle futures closed an average of 88¢ higher, except for 27¢ lower in the back contract.
Negotiated cash fed cattle trade was limited on moderate demand in all major cattle feeding regions through Thursday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were mainly steady in the Texas Panhandle at $224/cwt., mostly $1 lower in Kansas at $224, steady in Nebraska at $230-$232 and unevenly steady in the western Corn Belt at $230-$233. Dressed delivered prices were steady in Nebraska at $368. Dressed delivered prices in the western Corn Belt the previous week were $368-$370.
Choice boxed beef cutout value was $5.11 lower Thursday afternoon at $389.75. Select was $1.87 lower at $378.44.
Grain and Soybean futures were mixed Thursday.
Corn futures closed mainly 1¢ to 3¢ higher. Kansas City Wheat futures closed mostly 2¢ to 4¢ lower. Soybean futures closed 1¢ to 5¢ higher.
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Major U.S. financial indices powered forward Thursday, fueled by a more bullish reading of the nation’s employment situation.
Total non-farm payroll employment increased by 147,000 in June, according to the U.S. Bureau of Labor Statistics. That was more than the trade expected. The unemployment rate was little changed at 4.1%.
Average hourly earnings for all employees on private non-farm payrolls rose by 8¢ to $36.30 in June. Average hourly earnings have increased by 3.7% over the past 12 months.
The Dow Jones Industrial Average closed 344 points higher. The S&P 500 closed 51 points higher. The NASDAQ was up 207 points.
Through midafternoon, West Texas Intermediate Crude Oil futures (CME) were 22¢ to 45¢ lower through the front six contracts.
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Keeping the historically high prices in mind, wholesale beef prices appear to be running out of seasonal steam, with Choice boxed beef cutout value $6.74 lower from Thursday of last week to the previous Friday at $389.75/cwt. Select was $4.49 lower during the same period at $378.44.
With Labor Day — the remaining key grilling holiday left this summer — Andrew P. Griffith, agricultural economist at the University of Tennessee says further price support may prove tough top muster.
“With the thought that boxed beef prices will decline further, the question is how much will they decline and how long will it last,” Griffith says, in his weekly market comments. “The simple answer is for the market to expect softness starting now and not ending until late fall.”