“Lower cash sales of fed cattle combined with the downward trending futures is causing much uncertainty among cattle feeders,” noted the AMS reporter on hand for Thursday’s sale at Mitchell Livestock Auction in South Dakota.
Apparently, technical pressure, borne by recent bearishness was behind the hard drop in Feeder Cattle futures, which pressured Live Cattle in turn. It didn’t help that early support in Lean Hog futures faded through the session.
Net U.S. pork sales for Apr. 19-25 of 16,100 metric tons (mt) were 4% less than the previous week and 59% less than the prior four-week average, according to the Weekly Export Sales report from USDA’s Foreign Agricultural Service.
Beef exports continued softer, as well. Net export sales of U.S. beef (10,600 mt) were down 54% from the previous week and 50% lower than the prior four-week average.
Except for 20¢ lower in spot Jun, Live Cattle futures closed an average of 96¢ lower.
Feeder Cattle futures closed an average of $1.99 lower.
Wholesale beef values were lower on Choice and sharply lower on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.42 lower Thursday afternoon at $228.80/cwt. Select was $2.42 lower at $215.08.
Corn futures closed fractionally higher to 2¢ higher through near Dec and then fractionally lower to 3¢ lower.
Soybean futures closed mostly 7¢-8¢ lower.