Negotiated cash fed cattle trade and demand were moderate in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service. Prices were $1 higher at $186/cwt.
Elsewhere, trade was limited on good demand. Although too few transactions to trend, there were some early live FOB trades in Nebraska and the western Corn Belt at $192-$195. Last week, prices were $190 in Nebraska and $190-$193 in the western Corn Belt. Dressed prices were $301 last week.
Choice boxed beef cutout value was 71¢ higher Thursday afternoon at $318.31/cwt. Select was 32¢ higher at $299.25/cwt.
Cattle futures mostly edged higher with firmer wholesale beef prices and the outlook for higher cash prices this week. Before settlement, Live Cattle futures were an average of 44¢ higher. Feeder Cattle were an average of 22¢ lower, except for an average of 30¢ higher in the back two contracts.
Grain and soybean futures firmed Thursday.
Heading toward the close, and through Jly ’25 contracts, Corn futures were 4¢ to 7¢ higher, supported by a hot forecast and stronger weekly export sales. Kansas City Wheat futures were 1¢ to 6¢ lower. Soybean futures were 5¢ to 13¢ higher.
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Major U.S. financial indices settled little changed Thursday.
The Dow Jones Industrial Average closed 65 points lower. The S&P 500 closed 12 points higher. The NASDAQ was up 59 points.
Heading toward the close, West Texas Intermediate Crude Oil futures on the CME were 25¢ to 57¢ lower through the front six contracts.
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Although Choice beef cutout values rallied above $300/cwt. several weeks ago, Stephen Koontz, agricultural economist at Colorado State University notes prices are a bit softer year over year.
“Somewhat counteracting the normal improved demand during the summer are the strong slaughter volumes – especially of fed heifers – and the very strong counter-seasonal fed steer and heifer slaughter weights,” Koontz says, in the most recent issue of In the Cattle Markets. “Fed weights were flat through March, April, and May, so now there are almost 30 more pounds of beef per animal – both steers and heifers – than last year … there is almost 5% more beef due to heavier slaughter weights.”
At the same time, beef exports continue to face challenges for a number of reasons.
Net U.S. beef export sales the week ending June 6 of 12,000 metric tons were 17% less than the previous week and 28% less than the prior four-week average. Increases were primarily for South Korea, Japan, Canada, China, and Mexico.