Negotiated cash fed cattle trade was slow with moderate demand in Kansas and Nebraska through Wednesday afternoon, according to the Agricultural Marketing Service.
Live prices were steady in Kansas at $123-$124/cwt., but $1 lower in Nebraska at $124. Dressed trade in Nebraska was $2 lower at $198.
Trade was limited on light demand in other regions. A light test brought steady money of $124 in the Texas Panhandle. Live sales in the western Corn Belt last week were $123-$124; dressed sales were $196-$200.
Higher outside markets and potential positioning ahead of Friday’s Cattle on Feed report helped lift Cattle futures Wednesday.
Feeder Cattle futures closed an average of $1.09 higher (87¢ to $1.27 higher) except for 5¢ lower in spot Sep.
Live Cattle futures closed an average of $1.02 higher (65¢ to $1.30 higher).
Choice boxed beef cutout value was $3.54 lower Wednesday afternoon at $307.83/cwt. Select was $2.51 lower at $275.50.
Corn futures closed 7¢ to 8¢ higher through new-crop contracts and then mostly 1¢ to 3¢ higher.
Soybean futures closed 6¢ to 9¢ higher through the front six contracts and then mostly 1¢ to 4¢ higher.
Major U.S. financial indices rallied back Wednesday.
The Federal Reserve seemed to soothe some investor worries with its statement Wednesday, acknowledging progress in domestic economic recovery — and the likelihood of tapering its bond buying program soon — while holding interest rates steady and reiterating it will do so until maximum employment is achieved and inflation rises to 2% and moderately exceeds that level for some time.
“With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen,” according to the statement. “The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery. Inflation is elevated, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”
The Dow Jones Industrial Average closed 338 points higher. The S&P 500 closed 41 points higher. The NASDAQ was up 150 points.
USDA’s latest monthly Cold Storage report continues to reflect strong red meat demand.
Total pounds of beef in freezers Aug. 31 were 4% more than the previous month but 8% less year over year.
Frozen pork supplies were up 4% from the previous month but down 1% percent from the same time last year.
Total red meat supplies in freezers were 4% more than the previous month but 6% less than a year earlier.
Total frozen poultry supplies were down 3% from the previous month and down 20% from a year ago.