Cattle futures were higher Wednesday, supported by surging wholesale beef values, firmer outside markets and possibly an eye toward Friday’s monthly Cattle on Feed report.
Pre-report estimates are for February feedlot placements to be about 14% less year over year, February marketing to be down about 8% and the March 1 cattle on feed inventory to be down 2%.
Toward the close, Live Cattle futures were an average of $1.01 higher. Feeder Cattle futures were an average of $1.84 higher.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $202-$203/cwt. in the Southern Plains and $206 in the North. Dressed delivered prices were $325.
Choice boxed beef cutout value was $6.29 higher Wednesday afternoon at $329.61/cwt. Select was 55¢ lower at $308.68.
Grain and Soybean futures softened Wednesday.
Toward the close and through Sep ’25 contracts,
Corn futures were mostly 2¢ lower to 3¢ higher. Kansas City Wheat futures 8¢ to 11¢ lower. Soybean futures 4¢ to 5¢ lower.
******************************
Major U.S. financial indices closed higher Wednesday, helped along by the Fed saying a couple more interest rate cuts are still on the table for this year.
The Dow Jones Industrial Average closed 383 points higher. The S&P 500 closed 60 points higher. The NASDAQ was up 246 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were 21¢ to 31¢ higher through the front six contracts.
******************************
Despite the anticipated year-over-year decline in cattle slaughter this year, heavier carcass weights will help push beef production close to last year’s level, according to analysts with USDA’s Economic Research Service, in the March Livestock, Dairy and Poultry Outlook.
“In the first eight weeks of 2025, weekly carcass weights have averaged 40 pounds more than the same period last year,” ERS analysts say. They explain the increase is driven by heavier steer and heifer carcass weights, as well as the proportion fed steer and heifers in the slaughter mix.
Although the number of cattle on feed for more than 150 days Feb. 1 was about 3% less year over year, based on the February Cattle on Feed report, ERS analysts expect market-ready fed cattle supplies will increase amid slower packer production and cattle spending more time on feed.
As for the percentage of steers and heifers in the slaughter mix, ERS analysts note an increase. The percentage has averaged about 79% over the last decade, but they say it rose to 81% through the first 10 weeks of this year; the first time the percentage has eclipsed 80% since 2007.