Feeder Cattle futures plunged Thursday, carrying Live Cattle along. Primary pressure appeared to be the surge in Corn futures, skittishness about consumer beef demand with lower outside markets and Friday’s Cattle on Feed report.
Feeder Cattle futures closed an average of $4.83 lower ($3.55-$5.52 lower).
Live Cattle futures closed $1.77 lower ($1.45 to $2.12 lower).
Negotiated cash fed cattle trade ranged from slow on light to moderate demand to slow on light demand through Thursday afternoon, according to the Agricultural Marketing Service. FOB live prices were $1-$2 higher in the western Corn Belt at $186-$187, where dressed delivered prices were $2 higher at $292-$294 in a light test.
Although too few transactions to trend, there was some live trade in Kansas at $184 and at $186 in Nebraska, where there were a few in the beef at $294.
Last week, FOB live prices were $183/cwt. in the Southern Plains and $185 in Nebraska, where dressed prices were $292.
Choice boxed beef cutout value (p.m.): 26¢ higher at 304.12/cwt. Select was 87¢ lower at $277.48/cwt.
Grain and soybean futures closed higher Thursday, in part buoyed by thoughts that the harvest low has been established.
Corn futures closed 9¢ to 13¢ higher through the front four contracts and then mostly 4¢ to 7¢ higher.
Soybean futures closed mostly 2¢ to 4¢ higher.
KC HRW Wheat closed mostly 3¢ to 5¢ higher
Major U.S. financial indices closed lower again Wednesday, pressured once again by rising yields for the 10-year Treasury note.
The Dow Jones Industrial Average closed 250 points lower. The S&P 500 closed 36 points lower. The NASDAQ was down 128 points.
West Texas Intermediate Crude Oil futures (CME) closed 54¢ to $1.10 higher through the front six contracts.
Even with continued reduction in beef production next year — forecast 6% lower year over year— USDA expects the U.S. to remain the world’s largest beef producer in 2024.
“However, the U.S. is forecast to be only the fourth-largest exporter of beef in 2024, behind Brazil, Australia, and India,” says analysts with the Economic Research Service (ERS), in the latest Livestock, Dairy and Poultry Outlook.“Australian beef is considered to be one of the biggest competitors for U.S. beef on the global market; total beef exports from Australia are forecast to increase 5% in 2024. Beef exports from Brazil are expected to increase 4%.”
ERS analysts note that after the U.S., China, Japan and South Korea are the largest beef importing countries in the world and are the top three destination for U.S. beef exports, accounting for 60% of U.S. exports through August of this year.