Cattle Current Daily—March 6, 2023

Cattle Current Daily—March 6, 2023

Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Friday afternoon, with too few to trend, according to the Agricultural Marketing Service (AMS).

For the week, the only established trade reported by AMS was live prices of $164.50-$165.00/cwt. in the western Corn Belt, which was 50¢ to $1 higher. Dressed prices there the previous week were $260-$262.

Elsewhere the previous week, live prices were mostly at $164/cwt. and dressed prices were $262.

However, various private sources suggested more trade developing in other regions on Friday at $1-$2 higher. For instance, the Texas Cattle Feeders Association reported its members trading steers and heifers about $1 higher at $165.40) and $165.25, respectively.

Through Thursday, the weighted average five-area direct fed steer price was $1.19 higher at $164.84/cwt. The average steer price in the beef was $2.61 higher at $262.54.

Cattle futures gained Friday, supported by stronger cash fed cattle prices.

Feeder Cattle futures closed an average of $1.76 higher ($1.22 to $2.17 higher).

Live Cattle futures closed an average of $1.12 higher.

Choice boxed beef cutout value was 82¢ higher Friday afternoon at 289.32/cwt. Select was 72¢ lower at $276.86/cwt.

Corn futures closed 4¢ to 7¢ higher in old-crop contracts, mostly 1¢ to 3¢ lower.

KC HRW Wheat closed 5¢ to 9¢ lower.

Soybean futures closed mostly 5¢ higher.

******************************

Major U.S. financial indices closed higher Friday as rates eased for the benchmark 10-year treasury note.   

The Dow Jones Industrial Average closed 387 points higher. The S&P 500 closed 64 points higher. The NASDAQ was up 226 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.47 to $1.52 higher through the front six contracts.

******************************

Year-over-year beef production continues to decline, supporting cattle and beef prices.

Total cattle slaughter last week of 629,000 head was 11,000 more than the previous week but 30,000 head fewer than the same week last year. Estimated year to-date total cattle slaughter of 5.7 million was 153,000 fewer (-2.6%) than the same time last year. Estimated year-to-date beef production of 4.7 billion pounds was 219.2 million pounds less (-4.5%) than a year earlier.

“Cattle slaughter the first two months of the year is down relative to the same two months a year ago. Heifer slaughter is up ever so slightly while steer slaughter is down 2.2% and beef cow slaughter is down 5.7% compared to last year,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Heifer slaughter rates are sure to begin running lower than year-ago rates as we move through the year due to extremely high rates a year ago and the desire to retain females for breeding. This factor alone will assist cattle feeders in maintaining leverage for the foreseeable future. It means cattle feeders are likely to hold out for higher prices each week until packers are willing to raise bids. The supply is only going to get tighter moving through the next couple of years.”

Widespread moisture is helping improve heifer retention prospects. According to the Feb. 28 U.S. Drought Monitor, 55% of the continental United States was abnormally dry or experiencing drought, versus 73% a year earlier — 38% were experiencing drought versus 59% at the same time last year.

2023-03-05T19:16:20-06:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.