Cattle futures were narrowly mixed Wednesday as traders waited for weekly cash direction.
Heading into the close, Live Cattle futures were an average of 25¢ higher, except for unchanged and 32¢ lower on either end of the board. Feeder Cattle futures were an average of 28¢ higher, except for an average of 9¢ lower in three contracts.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, live FOB prices were $181/cwt. in the Texas Panhandle, $180-$181 in Kansas, $181-$182 in Nebraska and $182-$183 in the western Corn Belt. Dressed delivered prices were $288-$294.
Choice boxed beef cutout value was $2.53 lower Wednesday afternoon at $301.38/cwt. Select was $2.47 lower at $289.75.
Heading toward the close and through Jly ’25 contracts, Grain futures were mixed Wednesday.
Toward the close and through Jly ’25 contracts. Corn futures were fractionally mixed. Kansas City Wheat futures were 1¢ lower. Soybean futures were mostly 5¢ to 8¢ higher, supported by early reports of lower yields than expected.
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Major U.S. financial indices closed lower Wednesday, following a volatile trading session tied to the Fed’s decision to cut interest rates by 0.5% rather than the widely anticipated reduction of 0.25%.
“Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee’s 2% objective but remains somewhat elevated,” according to the FOMC statement.
The Dow Jones Industrial Average closed 103 points lower. The S&P 500 closed 16 points lower. The NASDAQ was down 54 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures on the CME were 61¢ to 75¢ lower through the front six contracts.
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Based on recent price weakness, USDA’s Economic Research Service (ERS) slashed expected average feeder steer prices for the remainder of this year in the latest Livestock, Dairy and Poultry Outlook. Compared to the previous month’s projections, ERS reduced the forecast third-quarter price by $9 to $252/cwt. and the fourth-quarter price by $13 to $255 for an annual average price of $251, which was $5.50 lower. The prices are basis Medium and Large #1 steers weighing 750-800 lbs., selling at Oklahoma City.
ERS analysts explain the average August price at Oklahoma National Stockyards was $15.78/cwt. less than the prior month and represented the first year-over-year decline since February 2021.
For next year, ERS reduced the forecast first-quarter price by $3 to $248 and the second-quarter price by $5 to $254 for an annual average price of $254, which was $5 less than the previous month’s projection.
As mentioned in Cattle Current recently, the ERS lowered expected five-area direct fed steer prices for the remainder of this year and the first half of 2025, in the September World Agricultural Supply and Demand Estimates.
Forecast prices were lowered by $3 in the third quarter to $188/cwt. and by $7 in the fourth quarter to $183 for an annual average of $185.11, which was $3 lower than the previous month’s estimate. Projected prices were lowered in the first quarter next year by $3 to $186 and by $4 in the fourth quarter to $186 for an annual average price of $186, which was $5 lower.