Negotiated cash fed cattle prices were mostly $2 lower on a live basis in Kansas through Wednesday afternoon at $138/cwt. That was on slow trade and moderate demand, according to the Agricultural Marketing Service. Prices were $2 lower to $2 higher at $138 in the Texas Panhandle on Tuesday.
Elsewhere, trade ranged from limited on light demand to mostly inactive on very light demand.
Last week, live prices were $145/cwt. in the Northern Plains and western Corn Belt. Dressed prices were $230.
Softer cash prices, wavering outside markets and anemic technical support pressured Cattle futures.
Feeder Cattle futures closed an average of $1.38 lower.
Live Cattle futures closed an average of $1.26 lower.
Choice Boxed beef cutout value was 99¢ lower through Wednesday afternoon at $266.57/cwt. Select was 71¢ lower at $245.99.
Corn and Soybean futures mainly extended losses, pressured by crop progress and lower Crude Oil.
Corn futures closed 7¢ lower through new crop contracts and then 1¢ to 4¢ lower.
Soybean futures closed 30¢ to 34¢ lower through Jly ’23 and then mostly 20¢ to 27¢ lower.
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Major U.S. financial indices closed little changed Wednesday.
The Dow Jones Industrial Average closed 47 points lower. The S&P 500 closed 4 points lower. The NASDAQ was down 16 points.
West Texas Intermediate Crude Oil futures on the CME closed $2.79 to $3.35 lower through the front six contracts, on concerns of slowing economic growth.
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The U.S. Senate Agriculture Committee advanced two bills on Wednesday related to the cattle markets: the Meat and Poultry Special Investigator Act of 2022 and the Cattle Price Transparency Act of 2022.
The National Cattlemen’s Beef Association (NCBA) once again voiced opposition to both.
Among other things, the Cattle Transparency Act would mandate minimum levels of regional cash fed cattle trade, which would restrict use of the alternative marketing arrangements producers utilize to reduce risk, differentiate carcass value and earn premiums or discounts, accordingly.
“The U.S. cattle industry is home to one of the most complex set of markets in the world. Rather than embrace the freedom of that marketing system, Congress is instituting a one-size-fits-all policy that will hurt cattle producers’ livelihoods,” says Ethan Lane, NCBA vice president of government affairs. “Cattle markets are finally returning to normal after pandemic-fueled uncertainty, but these heavy-handed mandates will stifle innovation and limit marketing opportunities.”
The Meat and Poultry Special Investigator Act of 2022 would create a new special investigator position at the U.S. Department of Agriculture.
“NCBA supports oversight of the market, but creating a duplicative, bureaucratic new special investigator role is the wrong approach. Congress should be focused on the issues that are hurting producer profitability now — rising food, fuel, and feed prices,” Lane says.