Negotiated cash fed cattle trade remained mainly undeveloped through Thursday afternoon. USDA reported some live trade in the Texas Panhandle at $99/cwt., at the upper end of the $97-$99 price range paid in the region so far this week. Live sales there last week were at $100.
Despite early pressure, Cattle futures continued to extend gains on Thursday, helped by the limit-up move in Lean Hog futures—across all but the back contract—presumably stemming from recent Chinese pork purchases and reports the U.S. will delay imposing additional tariffs, for a while.
Live Cattle futures closed an average of 60¢ higher (22¢ to $1.32 higher).
Feeder Cattle futures closed an average of 47¢ higher.
Wholesale beef values were steady on moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 8¢ higher Thursday afternoon at $219.97/cwt. Select was 20¢ higher at $198.60.
Corn and Soybean futures climbed Thursday, especially soybeans, on reduced yield and production estimated in the monthly World Agricultural Supply and Demand Estimates (see below).
Corn futures closed mostly 5¢ to 7¢ higher.
Soybean futures closed 20¢ to 29¢ higher through Jan ’21 and then mostly 15¢ to 19¢ higher.
Major U.S. financial indices closed higher Thursday.
Positive news included the aforementioned report that President Trump was delaying the imposition of added tariffs on Chinese imports for two weeks, as the two sides prepare for renewed negotiations in October.
Also, the European Central Bank lowered its deposit rate by 10 basis points to -0.50% and also renewed quantitative easing in the form of buying €20 billion of bonds per month, beginning in November.
The Dow Jones Industrial Average closed 45 points higher. The S&P 500 closed 8 points higher. The NASDAQ was up 24 points.
The World Agricultural Supply and Demand Estimates released yesterday reduced beef production and fed cattle prices for this year, compared to the previous month’s estimate
Beef production for this year was estimated 90 million lbs. less than the previous month at 26.95 billion lbs., primarily on the slower expected pace of fed cattle slaughter and lighter carcass weights in the fourth quarter. That would still be 81 million lbs. more than last year.
The average 5-area direct fed steer price (all grades) for this year is estimated at $113.50/cwt., which is $3 less than the previous month’s estimate, based on current prices and anticipated continued price weakness. Price for the third quarter is forecast at $107; $103 in the fourth quarter.
Total red meat and poultry production for this year is forecast at 104.60 billion lbs., which is 21 million lbs. less than the previous month’s estimate, but would be 2.17 billion lbs. more than last year. Higher expected broiler production offsets lower forecasts for beef, pork and turkey production.