Cattle futures drifted lower, pressured in part by the lack of firm cash direction for the week.
Before settlement, Live Cattle futures were an average of 52¢ lower. Feeder Cattle were an average of 42¢ lower.
Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $185/cwt. in the Southern Plains, $190 in Nebraska and $190-$193 in the western Corn Belt. Dressed delivered prices were $301 in Nebraska and $300-$301 in the western Corn Belt.
Choice boxed beef cutout value was 61¢ lower Wednesday afternoon at $317.60/cwt. Select was $1.69 lower at $298.93/cwt.
Grain and soybean futures were mixed again Wednesday, with little apparent direction taken from the monthly World Agricultural Supply and Demand Estimates.
Heading into the close, and through Jly ’25 contracts, Corn futures were 1¢ to 3¢ higher. Kansas City Wheat futures were 12¢ to 21¢ lower with likely harvest pressure. Soybean futures mostly 4¢ to 5¢ lower.
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Major U.S. financial indices settled mixed Wednesday, but were buoyed by the monthly Consumer Prices Index, which indicated slightly less inflation than expected.
The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in May on a seasonally adjusted basis, after rising 0.3% in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 3.3% before seasonal adjustment.
The Dow Jones Industrial Average closed 35 points lower. The S&P 500 closed 45 points higher. The NASDAQ was up 264 points.
West Texas Intermediate Crude Oil futures on the CME were 32¢ to 42¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) raised the expected average five-area direct fed steer price for most of the remainder of the year, in the June World Agricultural Supply and Demand Estimates.
Compared to the previous month, prices were projected $2 higher in the second quarter at $186/cwt. and $1 higher in the third quarter at $183, but $1 lower in the fourth quarter at $186. The forecast annual price for this year increased 50¢ to $184.01. ERS also raised the expected first-quarter price and the 2025 annual average price by $1 to $186 and $189, respectively.
Projected beef production for this year was basically unchanged at 26.6 billion pounds as heavier expected dressed weights mostly offset lower anticipated slaughter.
Forecast beef production for 2025 of 25.4 billion pounds was 245 million pounds more than the previous month’s estimate.
“The beef production forecast is raised on higher expected placements in the fourth quarter of 2024 and faster expected pace of marketings during the first half,” ERS analysts say. “In addition, dressed weights are expected to remain relatively high into 2025.”
Next year’s total would be 1.2 billion pounds less (-4.6%) than this year’s projected total.