Hopefully, Feeder Cattle futures finally found a bottom from the recent plunge on Wednesday, as traders pressed prices significantly higher Wednesday, helped along by Live Cattle futures, as well as no timeline for resuming cattle imports from Mexico, which some had feared.
Toward the close, Live Cattle futures were an average of $5.33 higher. Feeder Cattle futures were an average of $8.57 higher.
Negotiated cash fed cattle trade was inactive on light demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
So far this week, FOB live prices are mostly $230/cwt. in the North and dressed delivered trades in Nebraska are $355-$360.
Last week, FOB live prices in the Southern Plains were $238. Dressed delivered prices in the western Corn Belt last week were $372 in a light test.
Choice boxed beef cutout value was $1.73 higher Wednesday afternoon at $381.28/cwt. Select was $1.79 higher at $361.79.
Profit taking from recent gains seemed to be the order of the day in the grain complex on Wednesday.
Toward the close and through Jly contracts, Corn futures were unchanged to 2¢ higher. KC HRW Wheat mixed, from 1¢ lower to 3¢ higher. Soybean futures were mostly 2¢ lower.
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Major U.S. financial indices closed narrowly mixed Wednesday. While the Fed cut interest rates by 0.25%, as widely anticipated, investors soured on suggestions from the central bank that it might not cut rates again this year.
The Dow Jones Industrial Average closed 74 points lower. The S&P 500 closed fractionally lower. The NASDAQ was up 130 points.
West Texas Intermediate Crude Oil futures (CME) closed 21¢ to 24¢ higher through the front six contracts.