Packers were aggressive buyers Wednesday, pushing negotiated cash fed cattle prices $3-$5/cwt. higher on a live basis with moderate trade and good demand in all regions, according to the Agricultural Marketing Service.
Live prices were mostly $4-$5 higher in the Texas Panhandle at $154-$155, $3-$5 higher in Kansas at $154 to mostly $155, $3 higher in Nebraska at $156-$158 and $2 higher in the western Corn Belt at $155-$157. Dressed prices were $3 higher at $245.
Choice Boxed beef cutout value was $4.07 lower Wednesday afternoon at $252.56/cwt. Select was 85¢ lower at $233.33/cwt.
Higher Corn futures and light holiday trade pressured Cattle futures Wednesday.
Feeder Cattle futures closed an average of $1.66 lower ($1.10 to $2.43 lower).
Live Cattle futures closed an average of 51¢ lower, except for 5¢ higher in the back contract.
Corn futures closed 2¢ to 7¢ higher.
Soybean futures closed 1¢ to 6¢ higher through Nov ‘23 and then 1¢ to 2¢ lower.
******************************
Major financial indices closed higher Wednesday, buoyed by a more dovish tone in the latest Federal Reserve minutes, suggesting less aggressive interest rate hike may be coming soon.
The Dow Jones Industrial Average closed 95 points higher. The S&P 500 closed 23 points higher. The NASDAQ was up 110 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.66 to $3.01 lower through the front six contracts.
******************************
“The price of beef at all levels is expected to be supported the next few years as the domestic beef supply is expected to decline due to fewer breeding females,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “However, if inflation slows or consumers transition discretionary spending away from beef, then those factors will pressure prices lower.”
Although 30¢/lb. less than a year earlier, Griffith points out the average all fresh retail beef price in October remained at $7.25/lb. For perspective, he says the price in 2019 was $5.80/lb
“Seasonal tendencies have the ability to push retail prices higher or lower from month to month but strong demand and inflation are what have pushed prices to the levels experienced in 2022,” Griffith says.