Cattle futures closed sharply lower Thursday in an outside day with apparent technical pressure.
Live Cattle futures closed an average of $2.18 lower ($1.85 to $2.97 lower).
Feeder Cattle futures closed an average of $3.89 lower ($2.80 to $4.67 lower).
Negotiated cash fed cattle trade was slow on light to moderate demand in the western Corn Belt through Thursday afternoon, according to the Agricultural Marketing Service. FOB live prices were $2-$3 higher at $188.00. Dressed delivered prices were steady at $292.
Elsewhere, trade ranged from mostly inactive on light demand to a standstill with too few transactions to trend. Last week, FOB live prices were $185 in the Southern Plains and $185-$186 in Nebraska where dressed delivered prices were $292-$300.
Choice boxed beef cutout value was 96¢ higher Thursday afternoon at $310.78/cwt. Select was 65¢ higher at $301.69/cwt.
Corn futures closed 4¢ to 7¢ lower through Jly ’25 and then mostly 2¢ lower, with pressure from wheat.
KC HRW Wheat futures closed 9¢ to 12¢ lower, pressured by more bullish domestic weather, poor exports and China’s recent cancellation of purchases from the U.S. and other countries.
Soybean futures closed mixed, from 1¢ lower to 1¢ higher.
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Major U.S. financial indices closed lower Thursday with a hotter inflation reading than expected. The Producers Price Index for final demand rose 0.6% in February, seasonally adjusted, according to the U.S. Bureau of Labor Statistics.
The Dow Jones Industrial Average closed 137 points lower. The S&P 500 closed 14 points lower. The NASDAQ was down 49 points lower.
West Texas Intermediate Crude Oil futures (CME) closed $1.14 to $1.54 higher through the front six contracts.
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Compared to the previous month, USDA’s Economic Research Service (ERS) increased the forecast feeder steer price (750-800 lbs., Oklahoma City) by $5 for the remainder of year in the March Livestock, Dairy and Poultry Outlook.
Based on lower projected corn prices and higher expected fed cattle prices, ERS increased the feeder steer price to $239/cwt. in the first quarter, $247 in the second quarter, $261 in the third quarter and $267 in the fourth quarter for an annual average price of $253.50.
As mentioned recently in Cattle Current, compared to the previous month, ERS increased the forecast weighted average five-area direct fed steer price for the remainder of this year, in the March World Agricultural Supply and Demand Estimates.
Compared to the previous month, ERS increased projected prices $3 in the first quarter to $179/cwt., $3 in the second quarter to $183, $2 in the third quarter to $182 and $2 in the fourth quarter to $186. ERS increased the forecast annual average price $3 to $183. Prices were forecast higher on recent prices and firm demand for fed cattle.
“Packers are anticipated to pay more for fed cattle as the year progresses, when market-ready supplies tighten further,” ERS analysts say.