Cattle futures were lower again Thursday, on weaker boxed beef cutout values and the lack of cash direction.
Live Cattle futures were an average of 63¢ lower.
Feeder Cattle futures were an average of $1.19 lower.
Front month Cattle futures were trending mixed early in today’s session.
Negotiated cash fed cattle trade ranged from at a standstill in the Texas Panhandle to mostly inactive on light demand elsewhere through Thursday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $184/cwt. in the Southern Plains $186-$187 in Nebraska and $185-$187 in the western Corn Belt. Dressed delivered prices were $294-$295.
Choice boxed beef cutout value was $1.28 lower Thursday afternoon at $295.39/cwt. Select was $2.49 lower at $285.76/cwt.
Net U.S. beef export sales the week ending May 2 of 12,300 metric tons for 2024 were down 45% from the previous week and 29% from the prior four-week average. Increases were primarily for Japan, South Korea, Mexico, Taiwan, and Canada.
Grain futures were lower Wednesday with likely producer selling and perhaps positioning ahead of Friday’s World Agricultural Supply and Demand Estimates.
Corn futures mostly 1¢ to 2¢ lower through Jly ‘25. Kansas City Wheat futures mostly 3¢ higher. Soybean were 9¢ to 20¢ lower through Aug ‘25.
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Major U.S. financial indices crawled higher Thursday.
The Dow Jones Industrial Average closed 331 points higher. The S&P 500 closed 26 points higher. The NASDAQ was up 43 points.
West Texas Intermediate Crude Oil futures on the CME were 23¢ to 37¢ higher through the front six contracts.
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Cull cow prices continue higher year over year — helped along by the ground beef market — will increase with herd expansion, says James Mitchell, Extension livestock economist at the University of Arkansas, in the latest issue of Cattle Market Notes Weekly.
“After several years of liquidation, the available supply of beef cows becomes tight, and cull cow prices increase,” Mitchell explains. “The next few years should support cull cow prices when the expansion phase of the next cattle cycle begins and fewer cull cows find their way to sale barns.”
So far this year, Mitchell says cull cow prices are averaging $1.03 per pound more (+53%) year over year. He adds that, based on research, cull cows represent 15-30% of gross revenue for producers.
“We can use several marketing and management strategies to improve the value of cull cows further,” Mitchell says. “Improving body condition score and cow health can mean more total pounds and better cull cow quality, which both impact the total value of cull cows. Price seasonality is another important consideration, with the lowest prices occurring in the fall when most producers sell cull cows.”