Cattle futures lost some steam Wednesday with the lack of cash direction and likely profit taking.
Feeder Cattle futures closed an average of $1.34 lower (70¢ lower at the back to $2.15 lower at the front).
Live Cattle futures closed an average of 59¢ lower.
Negotiated cash fed cattle trade continued at a standoff through Wednesday afternoon, but popular sentiment expected at least steady prices this week.
Last week, live prices were $140-$141/cwt. in the Southern Plains and $143-$145 in Nebraska and the western Corn Belt. Dressed prices were $228-$232.
Choice Boxed beef cutout value was 87¢ higher Wednesday afternoon at $261.34/cwt. Select was $1.79 lower at $237.51/cwt.
Corn futures weakened Wednesday — 4¢ to 6¢ lower through Jly ‘23 and then mostly 1¢ 3¢ lower — presumably due mostly to profit taking.
Soybean futures closed mostly 12¢ to 15¢ lower through Jly ‘23 and then mostly 5¢ lower, pressured by Crude Oil once again.
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Major U.S. financial indices rebounded Wednesday with support including lower bond yields on the day.
The Dow Jones Industrial Average closed 435 points higher. The S&P 500 closed 71 points higher. The NASDAQ was up 246 points.
West Texas Intermediate Crude Oil futures on the CME closed $4.38 to $4.94 lower through the front six contracts, pressured by global demand concerns.
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“It is becoming more apparent that the supply of calves is going to be very tight this fall,” says Kenny Burdine, Extension livestock marketing and management specialist at the University of Kentucky. “Given the continued reduction in the size of the beef cow herd, this was likely to be a smaller fall calf run had weather not been a challenge. But, when combining that with the drought implications, fundamentals are setting up for a seller’s market for feeder calves.”
In a recent issue of Cattle Market Notes Weekly, Burdine notes beef cow slaughter levels remain 14% higher year over year.
Similarly, in is weekly market comments, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University explains, “Typically, calf prices reach the seasonal low around October. However, calf prices have moved counter-seasonally higher this summer as part of a general trend of higher cattle prices. That trend is expected to continue and is reflected in Feeder Cattle futures prices … The futures prices show a roughly $14/cwt. uptrend in prices in the next year.”