Cattle futures firmed Wednesday.
Feeder Cattle futures closed an average of 91¢ higher (32¢ to $1.42 higher).
Live Cattle closed an average of 27¢ higher, except for 15¢ lower in the back contract.
Negotiated cash fed cattle trade on Wednesday ranged from a standstill to slow on light demand in Kansas where FOB live prices were $3 lower at $185/cwt. in a light test, according to the Agricultural Marketing Service.
Last week, FOB live prices were $188/cwt. in the Southern Plains, $190 in Nebraska and $190-$191 in the western Corn Belt. Dressed delivered prices were $302.
Choice boxed beef cutout value was $2.51 lower Wednesday afternoon at $308.58/cwt. Select was $1.83 lower at $298.43/cwt.
Grain and Soybean futures mostly meandered lower as traders geared up for Thursday’s Prospective Plantings and Grain Stocks report from USDA.
Corn futures closed mostly 4¢ to 5¢ lower.
KC HRW Wheat futures closed mostly 1¢ lower.
Soybean futures closed mostly 6¢ to 7¢ lower.
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Major U.S. financial indices closed higher Wednesday with little economic news.
The Dow Jones Industrial Average closed 377 points higher. The S&P 500 closed 44 points higher. The NASDAQ was up 83 points.
West Texas Intermediate Crude Oil futures (CME) closed 16¢ to 27¢ lower through the front six contracts.
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As mentioned in Cattle Current last week, cattle prices are expected to strengthen this year and next, according to the recently released annual agricultural market baseline outlook from the Food and Agricultural Policy Research Institute at the University of Missouri (FAPRI). The outlook provides projections through 2033.
More specifically, FAPRI projects the five-area direct fed steer price at $178.57/cwt. this year, $184.59 next year and peaking in 2026 at $185.38. Prices then decline to $154.76 in 2033.
As for calves, basis 600-650-pound steers selling at Oklahoma City, prices are projected at $270.70/cwt. this year, $284.74 next year and peaking in 2026 at $286.19. Prices then decline to $224.71 in 2033.
Net return per beef cows are projected to be $387.30 this year, $469.07 next year and $479.92 in 2026 and $426.31 in 2027. From there, returns decline to $218.71 in 2031 and the declining further to $182.06 in 2033.