Negotiated cash fed cattle trade got off to a slow start for the week on Wednesday, but a start none the less. Established trade was steady at $150 in the Texas Panhandle on light demand and slow to limited trade.
Although too few to trend, there were some live sales in Kansas at $150 and some in Nebraska at $153/cwt.
Choice Boxed beef cutout value (p.m.): $1.27 lower at $257.09/cwt. Select was 41¢ lower at $231.35/cwt.
Cattle futures firmed and edged higher Wednesday. Feeder Cattle futures closed an average of 48¢ higher. Live Cattle futures closed an average of 56¢ higher.
Corn futures closed mixed, down fractionally to 1¢ through Sep ’23 then up fractionally to 1¢.
Soybean futures closed mostly 13¢ to 28¢ lower.
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Major U.S. financial indices closed lower Wednesday, on strongest retail sales in eight months, raising doubts the Federal Reserve will pause efforts to tamp down inflation.
The Dow Jones Industrial Average closed 39 points lower. The S&P 500 closed 33 points lower. The NASDAQ was down 175 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.25 to $1.33 lower through the front six contracts.
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USDA’s Economic Research Service (ERS) increased expected feeder steer prices (750-800 lbs., Oklahoma City) for the fourth quarter of this year and the first quarter of next year, in the latest Livestock, Dairy and Poultry Outlook.
“Despite higher operating costs, firm feedlot demand is expected for the remainder of 2022, and with current price data the fourth-quarter 2022 price forecast for feeder steers is raised $3 to $176/ per cwt.,” say ERS analysts. “Based on current price strength, the price projection in first-quarter 2023 is raised $2 to $177 per cwt. However, expected feeder calf prices were unchanged for the remainder of the year.”
ERS projects next year’s feeder steer prices to be $190 in the second quarter and $214 in the third quarter for an annual average price of $201.25. This year’s estimated annual price is $165.68.