Cattle futures continued higher Wednesday, supported by recently stronger cash fed cattle and wholesale beef prices. The next two trading sessions appear to be wild cards as traders position ahead of Friday’s monthly Cattle on Feed report and the three-day weekend.
Heading into the close and before settlement, Live Cattle futures were an average of $1.07 higher. Feeder Cattle were an average of $2.29 higher.
Negotiated cash fed cattle trade ranged from a standstill in Nebraska to slow on light demand in Kansas through Wednesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early FOB live trades in the Kansas at $187/cwt.
Last week, FOB live prices were $186/cwt. in the Southern Plains, $190 in Nebraska and $190 in the western Corn Belt with a few up to $191. Dressed delivered prices were $298 in Nebraska and mostly $300 in the western Corn Belt with a few up to $306.
Choice boxed beef cutout value was 85¢ lower Wednesday after noon at $312.17/cwt. Select was $1.26 lower at $299.61/cwt.
Turning to row crops, Corn futures were 1¢ to 3¢ higher through May ‘25. Kansas City Wheat futures 1¢ to 5¢ lower through May ’25. Soybean futures were 4¢ to 11¢ higher through May ’25.
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Major U.S. financial indices closed lower Wednesday. Primary pressure appeared to be minutes from the last Fed meeting reaffirming the notion that current inflation will rein back eventual rate cuts.
The Dow Jones Industrial Average closed 201 points lower. The S&P 500 closed 14 points lower. The NASDAQ was down 31 points.
Heading into the close West Texas Intermediate Crude Oil futures on the CME were 78¢ to $1.08 lower through the front six contracts.
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Based on feeder and stocker sales reported to the Agricultural Marketing Service, volume is about 6% less year over year for the first 19 weeks of 2024, according to Josh Maples, Extension livestock economist at Mississippi State University.
“There have been roughly 330,000 fewer feeder and stocker cattle sold at auction so far in 2024 than in the same time period of 2023,” Maples says, in the latest Cattle Market Notes Weekly. “Compared to the 5-year average (2018-2022), receipts in 2024 were down 3% (163,000 head) year to date. This dataset includes auction, direct, and video/internet sales that are reported to USDA. It does not capture all feeder and stocker cattle transactions … Thus, it’s not perfect, but comparisons over time can be informative when considering current market dynamics to previous years.”
Maples notes the percentage of heifer sales so far this year is 43%, mirroring the same period last year.
“Information gleaned from auction receipt totals this fall will be relatively more valuable this year to understand changes in the 2024 calf crop,” Maples says. “Traditionally, the first estimate of the 2024 calf crop would be released in the mid-year USDA Cattle Inventory report. However, USDA-NASS recently announced the mid-year report would be discontinued for budget reasons. They will not be releasing 2024 calf crop estimates until the January 2025 report is released.”