Negotiated cash fed cattle trade developed Thursday at mostly decidedly lower money. Except for mostly steady in Kansas at $110/cwt., live trade was $2-$4 lower at $110 in Nebraska and the Texas Panhandle; $110-$114 in the western Corn Belt. Dressed trade was $3-$4 lower at $180-$183.
Resurgent corn prices—after a couple of days of repositioning—weighed heavy on Cattle futures Thursday.
Live Cattle futures closed an average of 69¢ lower.
Feeder Cattle futures closed an average of $1.47 lower.
Corn futures closed 7¢ to 10¢ higher through Jul ‘20 and then mostly fractionally higher to 1¢ lower.
Soybean futures closed 10¢ to 13¢ higher through Jan ‘21 and then mostly 9¢ higher.
Wholesale beef values were lower on light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 87¢ lower Thursday afternoon at $220.72/cwt. Select was 76¢ lower at $201.48.
Major U.S. financial indices closed sharply higher Thursday. Support included follow through optimism that the Fed will cut interest rates, as well as a bounce in energy.
Crude oil prices (WTI-CME) jumped $2.87 to $3.10 on 2019 contracts with reports that Iran shot down a U.S. surveillance drone flying over international waters. Along with recent tanker bombings in the Gulf of Oman, the move could escalate tensions between the U.S. and Iran. By some calculations, about 20% of global oil consumption must move from the Persian Gulf through the Strait of Hormuz to get to open water. Iranian territorial waters lie within the Strait.
The Dow Jones Industrial Average closed 249 points higher. The S&P 500 closed 27 points higher. The NASDAQ was up 64 points.
Commercial red meat production of 4.57 billion lbs. in May was 1% more than the previous year and record-large, according to USDA’s monthly Livestock Slaughter report issued yesterday.
Beef production of 2.33 billion lbs. was up 1% year over year, as was total cattle slaughter of 2.94 million head.
For January through May of this year, commercial red meat production of 22.4 billion lbs. was 2% more than the same period last year.
At 847 lbs., the average dressed steer weight in May was 12 lbs. less than the previous month and 1 lb. less than the previous year. Average dressed heifer weight was 788 lbs., which was 11 lbs. less than the previous month and 2 lbs. lighter than the previous year.
Lower year-over-year carcass weights continued through the first week of June, according to USDA’s Actual Slaughter Under Federal Inspection report. Average dressed weights for both steers (846 lbs.) and heifers (782 lbs.) were 5 lbs. lighter year over year (week ending June 8).