Negotiated cash fed cattle trade was limited on light demand in all major feeding regions through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, Live prices are steady in the Texas Panhandle at $124/cwt., steady to $1 lower in Kansas at $123-$124, $2 lower in Nebraska at $122 and steady to $1 lower in the western Corn Belt at $122-$123. Dressed prices are $2 lower in Nebraska at $196 and steady to $1 lower in the western Corn Belt at $192-$196.
Position squaring for the end of the week, month and quarter, along with softer cash prices and sharply lower outside markets helped push Cattle futures lower Thursday.
Feeder Cattle futures closed an average of $2.35 lower, except for 35¢ lower in expiring Sep.
Live Cattle futures closed an average of $1.60 lower.
Choice boxed beef cutout value was $2.35 lower Thursday afternoon at $294.98/cwt. Select was $2.46 lower at $269.32/cwt.
Corn futures closed lower and Soybean futures closed sharply lower Thursday. Pressure included higher projected stocks than anticipated (see below) and the recently stronger dollar weighing on exports. As with cattle, week-end and month-end and positioning likely also contributed.
Corn futures closed mostly 2’2¢ to 2’6¢ lower.
Soybean futures closed 21¢ to 28¢ lower through Aug ’22 and then 15¢ lower to 3¢ higher.
Major U.S. financial indices closed sharply lower Thursday to close out a volatile month of trade, with investor frets including slowing economic growth, stimulus tapering, rising inflation and interest rates along with the Congressional war over the budget.
The Dow Jones Industrial Average closed 546 points lower. The S&P 500 closed 51 points lower. The NASDAQ was down 63 points.
USDA’s quarterly Grain Stocks report offered some market surprises.
Although, estimated old-crop corn stocks Sept. 1 were 36% less year over year at 1.24 billon bu., they were more than the trade expected. Of the total stocks, 395 million bu. were stored on farms, down 47% from a year earlier. Off-farm stocks, of 842 million bu. were 28% less than a year ago.
Likewise, old-crop soybean stocks of 256 million bu. were 51% less than a year earlier, but more than trade expectations. Soybean stocks stored on farms totaled 68.1 million bu., down 52% from a year ago. Off-farm stocks, of 188 million bu. were 51% less year over year.
All wheat stored in all positions was bullish at 1.78 billion bu. which was 18% less year over year and less than expected. On-farm stocks were estimated at 419 million bu., down 41% from last September. Off-farm stocks of 1.36 billion bu. were 6% less year over year.