Cash fed cattle trade for the week remained in neutral on Wednesday with cattle feeders growing more confident in the potential for higher prices.
Slaughter steers sold $2-$4/cwt. higher at Sioux Falls Regional Livestock in Worthing, SD yesterday. Slaughter heifers sold $2-$3 higher.
There were no sellers in the weekly Fed Cattle Exchange auction on Wednesday. Of the 1,444 head offered there were no sales, but several POs at $110.00-$110.75, which was the upper end of last week’s country trade.
Cattle futures closed little changed on Wednesday.
Live Cattle futures closed mostly 15¢ to 27¢ lower.
Feeder Cattle futures closed mostly 12¢ to 47¢ lower.
Choice boxed beef cutout value was $1.08 lower Wednesday afternoon at $196.32/cwt. Select was $1.26 lower at $188.76.
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Major U.S. financial indices closed higher on Wednesday. Presumably, part of the support came from hints in the minutes of the most recent Fed meeting that plans for another hike in interest rates this year remain intact.
“Consistent with the expectation that a gradual rise in the federal funds rate would be appropriate, many participants thought that another increase in the target range later this year was likely to be warranted if the medium term outlook remained broadly unchanged,” according to the minutes. “Several others noted that, in light of the uncertainty around their outlook for inflation, their decision on whether to take such a policy action would depend importantly on whether the economic data in coming months increased their confidence that inflation was moving up toward the Committee’s objective…”
The Dow Jones Industrial Average closed 42 points higher. The S&P 500 closed 4 points higher. The NASDAQ closed 16 points higher.
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Overall, 41% of the nation’s pasture and range remained in Good (37%) or Excellent (4%) condition compared to 49% at the same time a year ago, according to the latest USDA Crop Progress report. 25% is rated as Poor (16%) or Very Poor (9%), compared to 19% a year earlier.
48% of winter wheat is planted, which is 9% less than last year and 10% less than average. Only 27% is planted in Kansas compared to 59% for average. 42% is planted on Oklahoma, 20% behind the average pace. Planting in Texas is 2% ahead of the average pace at 54%. 25% has emerged, compared to 32% last year and 30% for average.