Live and feeder cattle prices at the Chicago Mercantile Exchange experienced a decline as market participants awaited direct business to develop. April live cattle closed $1.27 lower at $184.80, while June live cattle closed $.92 lower at $182.20. Similarly, March feeder cattle closed $1.12 lower at $245.55, and April feeder cattle closed $0.50 lower at $251.20.
The lack of significant trade volume suggests that market participants are holding out for potential developments on Thursday or Friday. Direct cash cattle trade activity was quiet on Wednesday, with bids emerging in Nebraska at $280 dressed. In the South, asking prices were floated at $182-plus live.
Meanwhile, at the Ozarks Regional Stockyards in Missouri, feeder steers and heifers saw an increase in prices. They were sold $3 to $6 higher, with some spots experiencing a rise of $10. Similarly, steer and heifer calves witnessed a price surge of $5 to $10, with some spots even reaching $15 higher.
According to the United States Department of Agriculture (USDA), demand was reported as very good, despite the heavy supply. While the receipts were down compared to the previous week, they were significantly higher than the previous year. The feeder supply at the stockyards included 55% steers, and 51% of the offering weighed over 600 pounds.
The decline in live and feeder cattle prices at the Chicago Mercantile Exchange reflects the cautious approach of market participants, who are waiting for direct business to unfold. The bids in Nebraska and asking prices in the South indicate the ongoing negotiations between buyers and sellers, with the hope of reaching a favorable agreement.
The significant trade volume anticipated on Thursday or Friday suggests that market participants are expecting some market-moving news or developments that could impact cattle prices. These developments could potentially provide clarity on the direction of the market and influence the buying and selling decisions of market participants.
At the Ozarks Regional Stockyards, the increase in prices for feeder steers, heifers, and calves can be attributed to the strong demand despite the heavy supply. This indicates that there is still a healthy appetite for cattle in the market, which bodes well for cattle producers.
Overall, the current state of the cattle market reflects a cautious and wait-and-see approach from market participants. The negotiations and potential developments in direct cash cattle trade, as well as the strong demand observed at the Ozarks Regional Stockyards, will likely play a crucial role in determining the future direction of cattle prices.
