Cattle futures fell hard Thursday. The driving force appeared to be continuation of what began with the bearish Cattle on Feed report last month (lots more placements than anticipated) and the expectation of another negative report this month, tied to the realization supplies will be higher than thought in the shorter term. Likewise, the monthly World Agricultural Supply and Demand Estimates (see below) published on Thursday confirmed expectations of more beef production than previously anticipated.
Feeder Cattle futures closed an average of $7.28 lower ($5.50 to $7.87 lower).
Live Cattle futures closed an average of $4.11 lower ($3.25 to $5.05 lower).
Negotiated cash fed cattle trade was slow on light to moderate demand in all major cattle feeding regions through Thursday afternoon, according to the Agricultural Marketing Service.
In light tests, FOB live prices were mostly $4 lower in the Texas Panhandle at $181/cwt. and mostly $5 lower in Kansas at $180.
Dressed delivered prices in Nebraska were mostly $5 lower at $287. Although too few to trend, there were a few FOB live trades at $181.50, compared to last week’s $185.
There were too few transactions to trend in the western Corn Belt, but there were some FOB live sales at $180 and some in the beef at $283-$287. Prices there last week were $185 and $292, respectively.
Choice boxed beef cutout value was 67¢ higher Thursday afternoon at $299.42/cwt. Select was $1.61 lower at $269.42/cwt.
Soybean and grain futures closed lower, pressured by the World Agricultural Supply and Demand Estimates.
Corn futures closed mostly 5¢ to 8¢ lower.
KC HRW Wheat closed 5¢ to 7¢ lower.
Soybean futures closed 12¢ to 22¢ lower through Sep ’24 and then 8¢ to 10¢ lower.