Negotiated cash fed cattle trade was moderate with good demand in all regions through Wednesday afternoon, according to the Agricultural Marketing Service.
FOB live prices were $190/cwt. in all regions, which was $2-$3 higher in the Texas Panhandle, $3-$4 higher in Kansas, $2-$3 higher in Nebraska and $2-$5 higher in the western Corn Belt. Dressed delivered prices last week were at $290 in Nebraska and $290-$300 in the western Corn Belt.
Choice boxed beef cutout value was 31¢ lower Wednesday afternoon at $311.26/cwt. Select was $1.19 lower at $274.30.
Cattle futures closed higher Wednesday, supported by stronger cash fed cattle prices. Toward the close, Live Cattle futures were an average of 75¢ higher. Feeder Cattle futures were an average of 88¢ higher.
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Major U.S. financial indices closed lower Wednesday, led by tech stocks. However, inflation news provided a bright spot. The Personal Consumption Expenditures (PCE) price index increased 0.2% month to month in October, which was in line with expectations.
The Dow Jones Industrial Average closed 138 points lower. The S&P 500 closed 22 points lower. The NASDAQ was down 115 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were 15¢ lower to 1¢ higher through the front six contracts.
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Heifer slaughter data continues pointing to scant retention, if any, for herd expansion.
In fact, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University says the percentage of heifers comprising the mix of total cattle slaughter this year will likely be the highest since 2004.
“Heifer retention usually lags changes in cow culling,” Peel explains in his weekly market comments. “Herd expansion results in decreased heifer slaughter rates similar to the 1991-1996 and the 2014-2017 periods. Current heifer slaughter rates suggest that the beef cow herd has continued to decrease in 2024 and that prospects for herd expansion in 2025 are very limited.”
Although less year over year, Peel says cow slaughter continues at a non-expansion pace.
“Declining cull cow rates are often the leading indicator of producer herd rebuilding intentions,” Peel explains. “Beef cow slaughter is down 17.9% year over year in the first 45 weeks of 2024. This is projected to result in an annual culling rate of about 10%, roughly equal to the long-term average and down from the recent high over 13% in 2022. During herd expansion the cow culling rate typically drops below 9% for 3-4 years.”