Negotiated cash fed cattle trade was limited on light demand in the Southern Plains. A few live sales in the Texas Panhandle traded from $119 to $120/cwt. through Wednesday afternoon, according to the Agricultural Marketing Service. In Kansas, a few live purchases traded at $120. In Nebraska and the Western Corn Belt, negotiated cash trading was slow with moderate demand. There were a few dressed trades in Nebraska at $190 to $191. In the western Corn Belt, there were a few live sales at $120 and few in the beef at $190-$191.
Feeder Cattle futures rallied higher with news JBS was resuming operations following the cyber-attack on its IT systems.
Feeder Cattle futures closed an average of $2.08 higher, from $3.18 to $2.40 higher in the front three months and $1.90 to $1.40 higher across the rest of the board.
Live Cattle futures closed an average of $1.61 higher, with the most gain ion the front two contracts. Only Apr ’22 and Jun ’22 gained less than $1 at 75¢ and 88¢ respectively.
Choice boxed beef cutout value was was $5.60 higher Wednesday afternoon at $340.16/cwt. Select was $5.43 higher at $311.88.
Grain markets were mixed on Wednesday with weather weighing on the corn market.
Corn futures closed down across the board an average of 6¢ lower through Jly ‘22.
Soybean futures closed up up an average of 16¢ through Mar ’22.
Major U.S. financial indices closed narrowly higher on Wednesday, remaining near all-time highs.
The Dow Jones Industrial Average closed 25 points higher at 34,600. The S&P 500 closed 6 points higher at 4,208. The NASDAQ closed 20 points higher at 13,756.
“Cattle producers are frustrated, and with good reason. In sale barns and state meetings across the country, we’re hearing the same story of sky-high input costs and intense market volatility. Across the industry, there’s a consensus that market dynamics which consistently squash producer profitability are not sustainable for live cattle or beef producers,” says NCBA President Jerry Bohn, president of the National Cattlemen’s Beef Association (NCBA). “As members of Congress create policy that directly impacts business conditions for our producers, it is critical that they consider the grassroots input and firsthand experiences of folks on the ground. Our letter provides that perspective and reinforces how urgently we need something to shift here to strengthen the security of the beef supply chain. NCBA has strong working relationships with members on both sides of the aisle, we have grassroots policy to back the actions we outlined today, and we hope the conversation in Washington around these critical policy areas will progress quickly.”
The letter Bohn refers to is one NCBA sent—with the support of 37 affiliate state cattle organizations— urging the leadership of the U.S. Senate and House Agriculture Committees to address critical areas of concern in the cattle and beef industry.
Specifically, NCBA pushed Sen. Debbie Stabenow (D-MI), Sen. John Boozman (R-AR), Rep. David Scott (D-GA-13), and Rep. Glenn “GT” Thompson (R-PA-15) to consider swift Congressional action to:
- Expand beef processing capacity
- Broaden labor policies to strengthen the beef processing workforce
- Increase transparency in cattle markets by reauthorizing Livestock Mandatory Reporting (LMR)
- Support industry efforts to reform “Product of the USA” generic labeling
- Ensure proper oversight of cattle market players by concluding the ongoing U.S. Department of Justice investigation into the meatpacking sector