Negotiated cash fed cattle trade developed Wednesday with moderate trade and demand in the Southern Plains and Nebraska. Live prices were $1-$2 lower than last week at $126-$127/cwt. Dressed trade in Nebraska was $1 lower at $204.
There were only 365 head (5 lots) offered in the weekly Fed Cattle Exchange auction. One lot of heifers (80 head) sold for $126/cwt.
Cattle futures took a wide and wild ride on Tuesday, but ended decidedly lower, pressured by softer cash fed cattle trade, a sense of overall market weakness and month-end position squaring.
Live Cattle futures closed an average of 56¢ lower (32¢ to 97¢ lower), except for 2¢ higher at the back of the board.
Feeder Cattle futures closed an average of $1.27 lower (65¢ to $2.20 lower).
Choice boxed beef cutout value was 51¢ higher on Wednesday afternoon at $221.03/cwt. Select was 31¢ higher at $215.10.
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Major U.S. financial indices closed sharply lower on Wednesday amid continued volatility. Pressure included ongoing concerns about rising interest rates, along with technical selling.
The Dow Jones Industrial Average closed 380 points lower. The S&P 500 closed 30 points lower. The NASDAQ closed 57 points lower.
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“The strength of all the cattle markets through this late winter needs to be kept in mind,” says Stephen Koontz, agricultural economist at Colorado State University, in the latest issue of In the Cattle Markets. “Calf prices have remained close to $200 per cwt, feeder cattle are about $150, fed cattle remain above $125, and boxed beef values are above $200. These are rather strong prices, given the volume of beef, pork and poultry in the domestic market. The strong domestic demand and strong export volumes that were well-reported through last year appear to be continuing. The other aspect that appears to be maintained is the retailer’s willingness to feature beef, keep beef posted prices somewhat reduced, and live with a smaller margin. All of these factors have kept the quantities moving and the prices strong.”