Negotiated cash fed cattle trade was light to moderate on moderate demand in Nebraska and the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service.
Live prices were steady in the Texas Panhandle at $138/cwt, steady to $1 higher in Kansas at $138 and steady to $3 higher in Nebraska at $145-$151. Dressed prices in Nebraska were steady at $234.
Elsewhere, trade was limited on moderate demand with too few transactions to trend. Last week live prices were $145 in Colorado and $145-$150 in the western Corn Belt, where dressed prices were $234-$240.
Choice Boxed beef cutout value was $2.26 lower through Wednesday afternoon at $264.88/cwt. Select was $2.50 lower at $240.81.
Cattle futures extended losses Wednesday, with a lack of cash direction early in the session.
Feeder Cattle futures closed an average of 66¢ lower (7¢ lower toward the back to $1.17 lower toward the front).
Live Cattle futures an average of 53¢ lower, except for 50¢ higher in expiring spot Jun.
Corn and Soybean futures closed mixed ahead of Thursday’s much-anticipated USDA Grain Stocks and Acreage reports.
Corn futures closed 5¢ to 6¢ lower through new-crop contracts and then mostly fractionally higher to 1¢ higher.
Soybean futures closed 10¢ to 15¢ higher through Aug ‘23. And then 8¢ to 9¢ higher.
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Major U.S. financial indices were little changed Wednesday as investor pessimism continued regarding inflation, uncertainty and volatility.
The Dow Jones Industrial Average closed 82 points higher. The S&P 500 closed 2 points lower. The NASDAQ was down 3 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.86 to $1.98 lower through the front six contracts.
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“…feedlot inventories are declining seasonally and typically bottom-out in the late summer. That trend is expected this year, too, but it remains to be seen just how quickly the inventory numbers decline through the summer or increase during the fall,” says Josh Maples, Extension livestock economist at Mississippi State University, in the latest issue of Cattle Market Notes Weekly. “The number of calves born in the U.S. has declined annually since 2018, and 2022 is expected to be smaller again.”
Reflecting on another month of record-large feedlot inventories June 1, Maples explains more heifers and cattle placed at lighter weights, among other factors, makes it difficult to pinpoint when feedlot inventories will begin to decline.
“Lighter cattle typically stay in feedlot inventory longer, and an increase in heifers in the feedlot mix means higher feedlot totals now but fewer replacements to produce calves later,” Maples says. “Both of these factors are likely contributing to higher feedlot totals today, but do not suggest sustained high inventories in the future.”