Cattle futures continued higher Wednesday, supported by more bullish outside markets, recently higher wholesale beef values and likely positioning ahead of Friday’s monthly Cattle on Feed report, which many expect to be bullish. Estimates ahead of the report see December placement down about 5%, December marketings about 2% more due to an extra marketing day and total cattle on feed Jan. 1 more than 2% less year over year.
Toward the close, Live Cattle futures were an average of 46¢ higher. Feeder Cattle futures were an average of $1.33 higher.
Negotiated cash fed cattle trade was inactive on light to moderate demand through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $233/cwt. in Kansas, mostly $233 in Nebraska and mostly $232 in the western Corn Belt. Dressed delivered prices were mostly $365 in Nebraska and $363-$365 in the western Corn Belt.
Choice boxed beef cutout value was $1.35 higher Wednesday afternoon at $366.11/cwt. Select was $2.61 higher at $362.45.
Grain futures were lower on Wednesday, but Soybean futures were higher with support likely including short covering and weather risk based on South American weather.
Toward the close, through near Sep contracts, Corn futures were mostly fractionally lower to 2¢ lower. KC HRW Wheat futures were 2¢ to 3¢ lower.
Soybean futures were 10¢ to 12¢ higher.
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Major U.S. financial indices closed sharply higher Wednesday, as President Trump reversed course once again, backing off threatened tariffs on countries opposing his plans to take control of Greenland.
The Dow Jones Industrial Average closed 588 points higher. The S&P 500 closed 78 points higher. The NASDAQ was up 270 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 30¢ to 49¢ higher through the front six contracts.
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So far this week, calf and feeder cattle prices at auction are following last week’s uneven trend.
Nationwide, last week, feeder steers and heifers sold mostly $5/cwt. lower to $5 higher, according to the Agricultural Marketing Service (AMS).
“Demand remains good to very good with the best demand for grazing weights and prices are still at high levels even if auctions aren’t setting new records every day,” say AMS analysts.
Last week’s trade volume of 451,100 head at auction, direct and via video-internet was 32,400 head fewer than the previous week but about 25,000 head more than the same week last year.