Negotiated cash fed trade ranged from slow to moderate on moderate demand in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service. Prices so far this week are $1 higher at $143/cwt.
Elsewhere, trade was moderate on moderate to good demand.
Dressed trade in Nebraska was $2-$5 higher at $228-$232. Live prices there last week were $143.
In the western Corn Belt, live prices this week are steady to $1 higher at $144-$145 and $2 higher in the beef at $228
Even so, Cattle futures continued to weaken Thursday with pressure from struggling outside markets and likely positioning ahead of Friday’s Cattle on Feed report. Pre-report estimates expect placement to be down 1% or so compared to last year and on-feed numbers to be about even.
Feeder Cattle futures closed an average of $1.41 lower, except for 2¢ higher in spot Sep.
Live Cattle futures closed an average of 85¢ lower (30¢ to $1.40 lower).
Cattle futures are weaker again through noon today.
Corn and Soybean futures paddled in place Thursday with ongoing pressure from lower outside markets and the higher U.S. dollar, but also speculation about lower yields.
Corn futures closed mostly fractionally higher to 2¢ higher.
Soybean futures closed 2¢ to 4¢ lower through Jly ‘23 and then mostly fractionally mixed.
Major U.S. financial indices closed lower again Thursday with growing concern about recession as the Fed battles inflation.
The Dow Jones Industrial Average closed 107 points lower. The S&P 500 closed 31 points lower. The NASDAQ was down 153 points.
CME WTI Crude Oil futures closed 55¢ to 66¢ higher through the front six contracts.
“August cutout data showed a strong resurgence in interest for Prime graded beef, approaching levels not seen since January of 2022,” according to analysts with the Livestock Marketing information Center, in its Livestock Monitor. “The Prime cutout value was $330.57/cwt., up from July’s $317.51 value, and just short of January’s peak for the year of $341.12. Interestingly, other grades of beef cutout failed to rally and were even with the month before. Branded, Choice, and Select cutout values have held the $275-$250 range since March 2022.”
The loin and rib drove increased Prime cutout value.
“The strong interest in prime rib and loin values is associated with a seasonal component that has become much more pronounced since 2017 in the premiums between Prime and other grades of beef,” LMIC analysts say. “Fall of 2021 was one of the largest historical cutout spreads, in which Prime commanded more than $80/cwt. over Choice. Prime Rib values are on pace to approach last year’s high point, while Prime loin values are slightly weaker.”
LMIC analysts point out 7.6% of carcasses graded Prime in August versus 8.7% the prior year.