Negotiated cash fed cattle trade was $2 higher in the Southern Plains at $126/cwt. on Thursday. Elsewhere, prices were trending generally steady with the previous week, but a higher range in Nebraska with too few to trend.
That and strong wholesale beef values helped push Cattle futures sharply higher, led by Live Cattle.
Live Cattle futures closed an average of $1.20 higher.
Other than 17¢ higher in the back contract, Feeder Cattle futures closed an average of $1.84 higher.
Choice boxed beef cutout value was 26¢ higher Thursday afternoon at $227.56/cwt. Select was $1.29 higher at $209.17.
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Major U.S. financial indices closed narrowly mixed on Thursday. There were sharp losses early in the session, tied to worries about the possible trade war with China, and then support by the end of the day with more positive quarterly earnings reports.
The Dow Jones Industrial Average closed 5 points higher. The S&P 500 closed 5 points lower. The NASDAQ closed 12 points lower.
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There are two supply-related keys to cull cow prices for the balance of this year, according to analysts with the Livestock Marketing Information Center (LMIC). One is persistently low milk prices that could increase dairy cow slaughter more than expected. The other is drought, which could force the culling of more beef cows than anticipated.
In the latest Livestock Monitor, LMIC analysts point out that so far this year, federally inspected cow slaughter is 7% more than last year—10% more for beef cows and 5% more for dairy cows.