Cattle futures closed mostly lower Thursday, following stronger support early in the session.
Feeder Cattle futures closed an average of $1.56 lower, except for 57¢ higher in expiring Oct.
Live Cattle futures closed an average of 72¢ lower, (10¢ to $1.10 lower) except for 57¢ higher in waning spot Oct.
Negotiated cash fed cattle trade was slow on light to moderate demand through Thursday afternoon, according to the Agricultural Marketing Service. Although too few to trend in any region, there were some FOB live trades in the Southern Plains at $183/cwt., in Nebraska at $183-$185 and in the western Corn Belt $183.
In established trade so far this week, FOB live prices are $2-$3 lower in the western Corn Belt at $183-$185. Dressed delivered prices are $4 lower in Nebraska and the western Corn Belt at $290.
Last week, FOB live prices were $184-$185/cwt. in the Southern Plains and $186-$187 in Nebraska.
Choice boxed beef cutout value was 65¢ lower Thursday afternoon at 306.85/cwt. Select was $1.97 lower at $279.69/cwt.
Corn futures closed mostly fractionally lower to 1¢ lower.
Soybean futures closed 7¢ to 8¢ lower through Jly ‘24 and then mostly 2¢ lower to fractionally higher.
KC HRW Wheat closed 3¢ to 5¢ higher.
Major U.S. financial indices closed lower Thursday, led by tech stocks.
The Dow Jones Industrial Average closed 251 points lower. The S&P 500 closed 49 points lower. The NASDAQ was down 225 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.69 to $2.18 lower through the front six contracts.
Global agricultural commodity prices this year are projected lower year over year but higher than the previous decade, according to the Baseline Update for International Agricultural Markets from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri.
“Many international commodity market prices surged in 2022. So far in 2023 prices have fallen in most cases, sometimes significantly as input costs have fallen, production recovered in key areas, and uncertainty regarding China’s economy weigh on the sector,” FAPRI analysts explain.
FAPRI projects global growth in real GDP for this year near 2.4% and below 3% for the remainder of the 7-year projection period.
“Inflation is expected to come under control and return to close to pre-COVID levels from 2024,” FAPRI analysts say. “Volatility in these markets in the near term is to be expected and it is important to note that the path these markets take will be more unpredictable than what is projected here (in the report). Furthermore, the numbers presented in this report should not be interpreted as forecasts but as projections.”