Cattle Current Daily—June 16, 2023

Cattle Current Daily—June 16, 2023

Live Cattle futures edged higher Thursday, supported by higher wholesale beef values. Live Cattle closed an average of 25¢ higher, except for 10¢ lower in the back contract.

Negotiated cash fed cattle trade ranged from slow with light to moderate demand in the North to mostly inactive with very light demand in the South through Thursday afternoon, according to the Agricultural Marketing Service.

Although too few to trend, there were some early live sales in Nebraska at $185/cwt. and $188 in the western Corn Belt. There were a few dressed sales in Nebraska at $294.00-$296.50.

Last week, live prices were $185/cwt. in the Texas Panhandle, $186 in Kansas, $189-$192 in Nebraska and $190 in the western Corn Belt. Dressed prices were $300 in Nebraska and $298-$300 in the western Corn Belt.

Choice boxed beef cutout value was $3.01 higher Thursday afternoon at $342.07/cwt. Select was 32¢ higher at $309.58/cwt.

Feeder Cattle futures closed an average of $1.53 lower, pressured by significantly higher Corn futures prices and the related stall to improving conditions.

According to the latest weekly U.S. Drought Monitor (beginning June 13), drought conditions existed in 25% of the continental U.S. versus 22% a week earlier. For the same time period, 42% of cattle inventory was affected by the drought, which was 2% more than the previous week and 6% more than two weeks earlier.

******************************

Corn futures roared higher mostly 12¢ to 25¢ higher Tuesday, fueled by expanding drought in the Corn Belt, with 57% of current corn production affected by drought, compared to 45% a week earlier and 34% two weeks earlier.

Corn received added support from the weekly U.S. Export Sales report (week ending June 8). Net U.S. sales for corn exports (2022-23) were 58% more than the previous week and noticeably higher than the prior four-week average.

Soybean futures closed mostly 27¢ to 50¢ higher.

Drought is affecting 51% of soybean production, compared to 39% a week earlier and 28% two weeks earlier.

Kansas City HRW Wheat futures closed 21¢ to 27¢ higher.

******************************

Major U.S. financial indices rallied sharply higher Thursday with investors apparently emboldened that the Fed pausing interest rates could suggest an end to monetary tightening sooner rather than later.

The Dow Jones Industrial Average closed 428 points higher. The S&P 500 closed 53 points higher. The NASDAQ was up 156 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.30 to $2.36 higher through the front six contracts.

******************************

USDA’s Economic Research Service (ERS) raised projected feeder steer prices (750-800 pounds, Oklahoma City) for the remainder of this year, in June’s Livestock, Dairy and Poultry Outlook. Forecast increases were based on recent price strength and improving summer grazing opportunities.

Prices were forecast $5 higher in the second quarter at $209/cwt., $10 higher in the third quarter at $224 and $6 higher in the fourth quarter at $226. The annual average price for this year was projected $6 higher at $227.

For reference, the highest recorded weekly price for feeder steers was $243.58/cwt. in October 2014, according to ERS.

“The ongoing story of tight cattle supplies combined with improving pasture conditions and lower year-over-year feed costs continues to push feeder cattle prices higher,” say ERS analysts. “Demand for limited supplies of feeder cattle remains strong. Feedlots are looking to fill their feedyards to take advantage of lower feed costs and the prospects for higher fed cattle prices, while recent rains have improved the drought situation in a few areas, likely creating some demand for cattle to go on grass.”

ERS projected the feeder steer price in the first quarter of 2024 at $222 with an annual average next year of $226.50.

As reported recently in Cattle Current, ERS raised the projected quarterly five-area direct average fed steer price $5-$9 for the remainder of the year to an annual average of $171.70/cwt.

2023-06-15T17:22:54-05:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.