Negotiated cash fed cattle prices in the Southern Plains on Friday were steady with the previous week at $111/cwt. Dressed trade was also steady in Nebraska at $175. Trade and demand were moderate in both regions. Elsewhere, prices appeared to be mostly steady, but there were too few transactions to trend.
Cattle futures edged hire on Friday, presumably in part due to short covering ahead of the monthly Cattle on Feed report (see below).
Live Cattle futures closed an average of 49¢ higher, (20¢ to 85¢ higher).
Feeder Cattle futures closed an average of 41¢ higher (10¢ to 82¢ higher).
Choice boxed beef cutout value was 29¢ higher Friday afternoon at $199.86/cwt. Select was 38¢ higher at $191.14.
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Major U.S. financial indices closed higher on Friday—sharply higher for the Dow. Analysts broadly attributed much of the optimism to the Senate’s budget approval, another step toward tax reform.
The Dow Jones Industrial Average closed 165 points higher. The S&P 500 closed 13 points higher. The NASDAQ closed 23 points higher.
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For the second consecutive month, feedlot placements were significantly higher than most analysts expected.
According to the monthly Cattle on Feed report issued Friday, feedlot placements (2.15 million head) in September were 13.5% more than last year. That’s at least 6% more than most pre-report estimates.
You’ll recall that last month, August placements (+2.6%) were about 6% higher that pre-release estimates, too. The news helped push Cattle futures sharply lower the following, Monday.
Of the cattle placed in September, 34.7% weighed 699 lbs. or less, 46.7% weighing 700-899 lbs. and 18.6% weighed 900 lbs. or more.
Marketings in September of 1.78 million head were 2.9% more, which was in line with estimates.
Total cattle on feed Oct. 1 of 10.81 million head were 5.4% more, which mirrored estimates ahead of the report.