Negotiated cash fed cattle prices were unevenly steady through Wednesday afternoon, according to the Agricultural Marketing Service. Live prices were steady to $1 higher in Nebraska at $125-$126/cwt., but steady to $2 lower in Kansas at $120-$122 (compare to two weeks earlier). Dressed prices in Nebraska were $1 higher at $198.
Although too few to trend, there were some live sales in the western Corn Belt steady to $1 higher at $126 and some in the beef $1 higher at $198.
So far this week, live prices in the Texas Panhandle are steady to 75¢ lower than two weeks earlier at $121.25 to $122.00.
Feeder Cattle futures sagged lower Wednesday beneath the weight of surging Corn futures, while Live Cattle received support from outside markets.
Live Cattle futures closed an average of 63¢ higher, except for 5¢ lower in expiring Jun.
Feeder Cattle futures closed an average of $2.19 lower through the front four months, then an average of 73¢ lower.
Choice boxed beef cutout value was $1.05 lower Wednesday afternoon at $291.29/cwt. Select was $1.13 lower at $269.27
USDA’s Acreage and Grain Stocks reports (see below) fueled grain futures Wednesday. Along with month-end position squaring, the wetter forecast and the coming holiday, some expect extreme price volatility in the coming days.
Corn futures closed between 25¢ and 40¢ higher through the front six contracts. That included limit-up in the front four new-crop contracts.
Soybean futures closed between 73¢ and 90¢ higher through the front six contracts
Major U.S. financial indices closed mixed on slow trading Wednesday.
The Dow Jones Industrial Average closed 210 points higher. The S&P 500 closed 6 points higher. The NASDAQ down 24 points.
Grain futures surged Wednesday as the latest USDA reports underscored the necessity of yield-favorable weather. Planted acre projections were significantly less than analyst expectations ahead of the report. Estimated grain stocks were less than expected, too.
USDA estimates corn planted area for all purposes this year at 92.7million acres, according to the Acreage report released Wednesday. That would be 1.87 million acres more (+2%) than last year.
Soybean planted area for 2021 is estimated at 87.6 million acres, up 5% from last year.
All wheat planted area this year is projected to be 46.7 million acres, which would be 5% more than last year, but still the fourth lowest all wheat planted area since records began in 1919. The 2021 winter wheat planted area, projected at 33.7 million acres, would be 11% more than last year.
Estimated acres of all hay harvested this year is forecast at 51.5 million acres, which would be 701,000 fewer acres (-1.34%) than last year.
Corn stocks in all positions on June 1 were 18% less than a year earlier at 4.11 billion bu., according to USDA’s quarterly Grain Stocks report. Of the total stocks, 1.74 billion bu. are stored on farms, down 39% from a year earlier. Off-farm stocks, at 2.37 billion bu., are up 11% from a year ago.
Soybeans stored in all positions on June 1 totaled 767 million bu., down 44% from the same time last year. On-farm stocks totaled 220 million bu., down 65% from a year ago. Off-farm stocks, at 547 million bu., are down 27% from a year ago.
Old crop all wheat stored in all positions on June 1 totaled 844 million bu., down 18% from a year earlier. On-farm stocks are estimated at 142 million bu., down 38% from last year. Off-farm stocks, at 702 million bu., are down 12% percent from a year ago.