Cattle futures continued lower Wednesday, hampered by wariness ahead of the Fed’s interest rate announcement and swift declines in wholesale beef prices.
Negotiated cash fed cattle trade was limited on moderate demand in the Texas Panhandle through Wednesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early FOB live trades at $238-$239/cwt. Elsewhere, trade was mostly inactive on light to moderate demand.
Last week, FOB live prices were mainly $240/cwt. in all regions. Dressed delivered prices were $375-$378.
Choice boxed beef cutout value was $4.44 lower Wednesday afternoon at $388.18/cwt. Select was $6.80 lower at $366.37.
Toward the close, Live cattle futures were an average of $2.04 lower. Feeder Cattle futures were an average of $4.51 lower.
Grain and Soybean futures closed lower with likely increased farmer selling.
Toward the close and through away Jly contracts, Corn futures were 2¢ lower. Kansas City Wheat futures were 6¢ to 7¢ lower. Soybean futures were 5¢ lower.
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Major U.S. financial indices closed mixed Wednesday with key news being the widely anticipated Fed interest rate cut of a quarter-point.
“Recent indicators suggest that growth of economic activity moderated in the first half of the year,” according to the FOMC statement. “Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.”
The Dow Jones Industrial Average closed 260 points higher. The S&P 500 closed 6 points lower. The NASDAQ was down 72 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 52¢ to 67¢ lower through the front six contracts.