Cattle futures were lower Thursday, weighed down by bearish outside markets, tied to escalating energy prices and uncertainty stemming from the U.S.-Israel attack on Iran.
Toward the close, Live Cattle futures were an average of $2.25 lower. Feeder Cattle futures were an average of $5.54 lower ($3.05 to $6.42 lower).
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Thursday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $235-$236/cwt. on a light test in the Texas Panhandle and mostly $235 elsewhere. Dressed delivered prices in the North were mainly $372.
Choice boxed beef cutout value was $1.45 lower Thursday afternoon at $400.30/cwt. Select was $3.72 lower at $392.45.
Corn and Soybean futures were higher Thursday, riding the coattails of Crude Oil futures prices and inflation concerns, while traders added weather premium to Hard Red Winter Wheat futures.
Toward the close, and through near Sep contracts, Corn futures were 5¢ to 6¢ higher. Soybean futures were 6¢ to 7¢ higher. Kansas City HRW Wheat futures were 4¢ higher.
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Major U.S. financial indices extended losses Thursday on elevated Crude Oil futures and inflation worries.
The Dow Jones Industrial Average closed 203 points lower. The S&P 500 closed 18 points lower. The NASDAQ was down 61 points.
Through mid-afternoon, after trading higher earlier in the session, West Texas Intermediate Crude Oil futures (CME) were 55¢ to $1.43 lower through the front six contracts.
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USDA’s Economic Research Service (ERS) increased projected feeder steer prices for this year in the March Livestock, Dairy and Poultry Outlook, based on recent price strength and continued firm demand.
For Medium and Large No. 1 steers weighing 750-800 lbs. and selling at Oklahoma National Stockyards, ERS increased prices $3 in the first quarter to $366/cwt., $4 in the second and third quarters to $367 and $1 in the fourth quarter to $369. The annual average price increased $3 to $367.25.
“The fundamentals surrounding cattle supplies still give support to cattle prices despite volatility in the futures market,” ERS analysts say. “Further, U.S. feeders and stocker operations continue to buoy feeder cattle prices as they try to secure their needs.”
ERS analysts add that February’s weighted-average price for feeder steers weighing 750–800 pounds at Oklahoma National Stockyards was $371.42/cwt. — $101 above the prior year and the second-highest monthly average price on record.