Negotiated cash fed cattle trade was moderate with moderate demand in the Texas Panhandle through Wednesday afternoon, according to the Agricultural Marketing Service. In Kansas, trading was slow on moderate demand. Live sales in both regions were steady to $2 lower at $120/cwt.
Trading in Nebraska and the Western Corn Belt was limited on light demand.
In Nebraska, a few dressed sales traded at $198-$202/cwt. Prices last week were $198 in the beef and $125.00-$126.50 on a live basis.
In the Western Corn Belt, a few live sales traded at $125/cwt. and a few dressed from $200-$202/cwt. Last week, prices were $124-$126 and $197-$202, respectively.
Feeder Cattle futures closed an average of $1.71 lower Wednesday amid likely profit taking from solid gains in the previous session.
Live Cattle futures closed an average of $1.15 lower with the steady to lower cash market and continued decline in wholesale beef values.
Choice boxed beef cutout value was $1.78 lower Wednesday afternoon at $284.90/cwt. Select was $1.23 lower at $262.08
Corn futures continued under pressure from the wetter, cooler forecast: 3¢ and 9¢ lower through the front six contracts.
Soybean futures bounced back from the previous day’s steep decline, helped along by eroding crop conditions. They closed 20¢ and 22¢ higher through the front six contracts.
Major U.S. financial indices rose moderately on Wednesday with the S&P 500 closing at another record high.
The Dow Jones Industrial Average closed 104 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 1 point.
“Over the last three months, beef cow slaughter totaled 818,000 head, the most since the 837,000 during the same period in 2010,” says David Anderson, livestock economist with Texas A&M AgriLife Extension Service. “Total cow slaughter over the same period is the largest since 2013. At that time, the industry was reducing the number of beef cows due mostly to low prices and then the drought in Texas and the Southwest.”
More specifically, in the July 5 issue of In the Cattle Markets, Anderson explains beef cow slaughter for the previous three months was the most since 2011 in the region that includes Texas, New Mexico and Oklahoma. It was the most since 2013 for the region including Arizona and Nevada.
Even so, Anderson points out cull cow prices are higher year over year.
“Cull cow prices usually increase from the beginning of the year until mid-year,” Anderson explains. “Southern Plains 85-90% lean cows increased at a normal seasonal rate to about $65/cwt. at the end of June, about $8 higher than last year. National cutter cow prices hit $67 (end of June), also about $8 above a year ago.”