Just a single lot (125 head) sold out of the 1,240 head offered in the weekly Fed Cattle Exchange auction. The heifers sold for a weighted average price of $163/cwt. on a dressed basis for delivery at 1-17 days. That was $3 less than steers selling in the beef there last week.
Another day of firmer wholesale beef values, reports of renewed commercial interest and hopeful notions that packers need to acquire inventory helped lift Cattle futures on Wednesday.
Live Cattle futures closed an average of 57¢ higher.
Feeder Cattle futures closed an average of $1.09 higher (80¢ to $1.50 higher).
Choice boxed beef cutout value was 48¢ higher Wednesday afternoon at $192.93/cwt. Select was 20¢ higher at $190.67.
Corn futures closed 2¢ higher through Sep ’18 and then fractionally higher to 1¢ higher.
******************************
Major U.S. financial indices rebounded from the previous session’s steep losses to close moderately higher on Wednesday, on mixed economic news.
The Dow Jones Industrial Average closed 54 points higher. The S&P 500 closed 7 points higher. The NASDAQ closed 17 points higher.
******************************
Weekly cattle slaughter was running 3-10% higher year over year through July and early August, and it needs to keep up the pace, says Stephen Koontz, agricultural economist at Colorado State University, in the latest issue of In the Cattle Markets.
“Strong packer margins and Saturday kills show no problems as of yet, but what plays out over the months of September and October will be important for fed and feeder cattle prices well into next year,” Koontz explains. “Weekly fed slaughter and monthly fed cattle marketing need to be watched closely. The slowing of either will lead cattle prices lower.”
Compared to beef retail featuring for Memorial Day, Koontz adds that the lack of news about Labor Day featuring poses concern.
“Late summer featuring is present but not as strong as that of early summer,” Koontz says. “Retail prices rebounded sharply upward through May and June after months of softening last fall. This summer’s retail prices are similar to last year and the retailer margin strengthened a lot last month. Strong consumer demand will be needed in the fall and it is not clear that’s likely.”