Negotiated cash fed cattle trade was slow on light demand through Thursday afternoon, according to the Agricultural Marketing Service. Live sales were steady in the Southern Plains at $150/cwt. and steady with the prior week in the western Corn Belt at $152-$153. Dressed prices in the western Corn Belt last week were $240.
Although too few to trend, there were some dressed trades $2-$3 higher in Nebraska at $242-$243. Live prices there last week were $152-$153.
Choice Boxed beef cutout value was $1.71 higher Thursday afternoon at $265.18/cwt. Select was 10¢ lower at $233.06/cwt.
Cattle futures wobbled Thursday as traders appeared to take a wait-and-see breather after the previous session’s gains.
Feeder Cattle futures closed an average of 59¢ lower, except for 12¢ higher in the back contract.
Live Cattle futures closed narrowly mixed from an average of 12¢ lower to an average of 22¢ higher.
Corn futures closed 7¢ to 8¢ lower through Jly ‘23 and then narrowly mixed.
Soybean futures closed mostly 12¢ to 17¢ lower.
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Major U.S. financial indices closed lower again Thursday with follow-through pressure from the Fed’s bearish interest rate outlook.
The Dow Jones Industrial Average closed 146 points lower. The S&P 500 closed 39 points lower. The NASDAQ was down 181 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.20 to $1.83 lower through the front six contracts.
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Higher expected sale prices and moderating cost of gain are expected to exceed the higher cost of feeder cattle, leading to positive cattle feeding returns from now through June, according to the latest Historical and Projected Kansas Feedlot Net Returns from Kansas State University (K-State).
Projected returns for steers range from $42.68 per head in June 2023 to $148.06 in December this year. Feeding cost of gain ranges from $120.37/cwt. in May to $135.49 in October.
Projected returns for heifers range from $31.50 per head in June to $148.56 in May. Feeding cost of gain ranges from $129.12/cwt. in May to $142.90 in October.
Glynn Tonsor, K-State agricultural economist who prepares the monthly feedlot outlook emphasizes the projection process reflects a cash basis with no price risk management.