Cattle futures stepped lower Thursday, bowing to softer cash fed cattle prices and the continued seasonal decline in wholesale beef values. Some also suggested conditional FDA approval of an injectable from Zoetis for the prevention and control of New World screwworm might have been part of the pressure, speculating it might mean a quicker reopening of the Mexican border — emphasis on speculation.
Toward the close, Live Cattle futures were an average of 96¢ lower. Feeder Cattle futures were an average of $3.65 lower.
Negotiated cash fed cattle trade ranged from inactive on light to moderate demand in the Southern Plains to limited on moderate demand in the North through Thursday afternoon, according to the Agricultural Marketing Service.
Although too few to trend, there were a few FOB live trades at $230/cwt. in Nebraska and at $228-$230 in the western Corn Belt. There were also a few dressed delivered trades in Nebraska at $360.
So far this week, FOB live prices are $2-$5 lower at $230/cwt. in Nebraska and mainly $2 lower in the western Corn Belt at $230. Dressed delivered prices are $5 lower in Nebraska at $360.
Last week, FOB live prices were $237/cwt. in the Texas Panhandle, $235-$237 in Kansas and mostly $232 in the western Corn Belt, where dressed delivered prices were $365.
Choice boxed beef cutout value was $5.25 lower Thursday afternoon at $363.22/cwt. Select was $3.49 lower at $343.40.
Grain and Soybean futures rose Thursday with apparent short covering, as well as optimism tied to government chatter about trade talks with China.
Toward the close and through Jly contracts, Corn futures were 4¢ higher. KC HRW Wheat were 2¢ to 3¢ higher. Soybean futures were 7¢ to 9¢ higher.
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Major U.S. financial indices closed higher again Thursday with investors apparently betting on a brief government shutdown.
The Dow Jones Industrial Average closed 78 points higher. The S&P 500 closed 4 points higher. The NASDAQ was up 88 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 75¢ to $1.05 lower.