Cattle futures found some traction Thursday with a let up in Corn futures and perhaps some short covering.
Live Cattle futures closed an average of $1.24 higher (40¢ to $1.72 higher).
Feeder Cattle futures closed an average of $3.07 higher ($2.55 to $3.45 higher).
Corn and Soybean futures took a breather Thursday from the recent steep run-up.
Corn futures closed mostly 7¢ to 8¢ lower.
Soybean futures closed 14¢ to 40¢ lower through Sep ‘24 and then mostly 6¢ lower.
KC HRW Wheat closed mostly 5¢ to 6¢ higher.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand through Thursday afternoon, with too few transactions to trend in any region, according to the Agricultural Marketing Service.
So far this week, live prices are $2 lower in the Southern Plains at $180/cwt., $3-$4 lower in Nebraska at $182-$185 and $2-$3 lower in the western Corn Belt at $184-$185.
Last week, dressed prices were $296 in Nebraska and $294-$300 in the western Corn Belt.
Choice boxed beef cutout value was 22¢ higher Thursday afternoon at $334.47/cwt. Select was 45¢ lower at $303.80/cwt
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Major U.S. financial indices firmed Thursday with the most support for tech stocks.
The Dow Jones Industrial Average closed 4 points lower. The S&P 500 closed 16 points higher. The NASDAQ was up 128 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.39 to $3.02 lower through the front six contracts, pressured by central banks around the world raising interest rates, as well as concerns about China’s economic growth and demand.
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Current and recent U.S. Drought Monitors paint a clear picture behind the drought premiums added to grain and soybean futures.
For the week beginning June 20, drought existed across 58.5% of the Midwest, compared to 48.7% a week earlier and 32.1% two weeks earlier.
For the same week, 64% of U.S. corn production was in drought areas, compared to 57% a week earlier and 45% two weeks earlier. The same week last year, drought covered 17% of production.
Likewise, 57% of U.S. soybean production was affected by drought the week beginning June 20, compared to 51% a week earlier, 39% two weeks earlier and 11% a year earlier.
For the same week, drought encompassed 27.1% of the Continental U.S. versus 25.0% a week earlier and 34.5% two weeks earlier. Forty percent of U.S. cattle were in areas affected by drought.