Early negotiated cash fed cattle trade took a steep step lower on Wednesday, with early live prices mostly $5 lower in the Southern Plains and Nebraska at $120.50 (Nebraska) to $121/cwt. Dressed trade in Nebraska was $10-$13 lower at $190.
There were only 409 head (three lots) offered and no sales in the weekly Fed Cattle Exchange Auction on Wednesday. There were two lots of heifers passed out at $120 and $121/cwt.
Cattle futures, especially Feeder Cattle, closed higher, perhaps buoyed by rolling contracts ahead.
Live Cattle futures closed an average of 61¢ higher.
Except for 55¢ higher in spot Mar, Feeder Cattle futures closed an average of $1.95 higher ($1.22 to $2.47 higher).
Choice boxed beef cutout value was 78¢ lower Wednesday afternoon at $221.62/cwt. Select was $2.61 lower at $211.63.
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Major U.S. financial indices edged lower on Wednesday, with tech stocks once again applying most of the pressure.
The Dow Jones Industrial Average closed 9 points lower. The S&P 500 closed 7 points lower. The NASDAQ closed 59 points lower.
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Heading into Thursday’s Prospective Plantings report from USDA, most estimates favor corn losing more ground to soybeans, with wheat about even with last year.
For instance, analysts with Allendale, Inc. have corn acres at 88.5 million acres, compared to USDA’s estimate at the Agricultural Outlook Forum (AOF) of 90.0 million and last year’s 90.2 million.
Allendale has soybean acres at 92.1 million acres, compared to 90.1 acres last year and the AOF estimate of 90.0 million.
Allendale estimates total wheat acres at 46.9 million acres, compared to 46.0 million last year. The AOF estimate was 46.5 million acres.