Cattle futures were lower heading into the close Wednesday with pressure including lower wholesale beef values and a lack of cash direction for the week. Live Cattle futures were an average of 43¢ lower. Feeder Cattle were an average of $1.04 lower.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $186/cwt. in the Southern Plains, $190 in Nebraska and $188-$192 in the western Corn Belt. Dressed delivered prices were $301 in Nebraska and $300-$301 in the western Corn Belt.
Choice boxed beef cutout value was $2.09 lower Wednesday afternoon at $314.79/cwt. Select was $3.57 lower at $300.90/cwt.
Grain futures continued to unwind Wednesday. Heading into the close, through Jly ’25 contracts, Corn futures were 2¢ to 3¢ lower. Kansas City Wheat futures were 8¢ to 12¢ lower. Soybean futures were 3¢ to 6¢ lower.
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Major U.S. financial indices closed higher Wednesday led by tech stocks. Support also came on weaker employment data, boosting hopes for interest rate cuts.
The Dow Jones Industrial Average closed 96 points higher. The S&P 500 closed 62 points higher. The NASDAQ was up 330 points.
Heading toward the close West Texas Intermediate Crude Oil futures on the CME were 59¢ to $1.01 higher through the front six contracts.
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Next year is likely to begin with a smaller beef cow herd, whether or not producers begin retaining heifers for expansion, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.
“The question of when heifer retention begins is important in two respects,” Peel says, in his weekly market comments. “First, heifer retention will further squeeze feeder supplies and push feeder cattle prices higher. That is likely to happen later this year. Secondly, the longer it takes to start heifer retention, the longer the industry will continue to see reduced cattle inventories, smaller beef production, and high average cattle and beef price levels.”
There is no clear indication of heifer retention occurring currently. Previously, initial indications could be seen in USDA’s mid-year Cattle report. However, they recently did away with the report.
Grazing conditions across much of the country support expansion, but Peel points out numerous factors contribute to producer decisions.
“Despite improved current forage conditions, the threat of rebuilding La Niña conditions later in the year is likely tempering some production plans,” Peel says. “Moreover, while higher calf prices provide incentives to increase calf production, it’s not clear that producers are yet reacting to long term profitability prospects (to retain heifers) as much as short-term revenue from selling more calves now.”