The monthly Cattle on Feed report issued during trading hours on Friday pressured Cattle futures with significantly more placements than expected (see below).
Except for 20¢ higher and 20¢ lower at either end of the board, Live Cattle futures closed an average of 86¢ lower (55¢ to $1.30 lower).
Feeder Cattle futures closed an average of $1.58 lower.
Choice boxed beef cutout value was $1.44 higher on Friday afternoon at $199.56/cwt. Select was $1.01 higher at $187.88.
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Major U.S. financial indices edged lower on Friday. Support included President Trump signing tax reform into law. Pressure included less of an increase in November personal income than investors expected. According to the U.S. Bureau of Economic Analysis on Friday, November personal income was 0.3% higher.
The Dow Jones Industrial Average closed 28 points lower. The S&P 500 closed 1 point lower. The NASDAQ closed 5 points lower.
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Lots more cattle were placed on Feed in November than the trade was expecting.
According to Friday’s monthly Cattle on Feed report from USDA, 2.1 million head were placed in November, which was 13.9% more than last year. That was about 9% more than average estimates ahead of the report. In terms of weight composition, 55.1% were placed at weights lighter than 700 lbs. and 9.3% went on feed weighing 900 lbs. or more.
Marketings in November of 1.84 million head were 3.2% more than the previous year.
The total number of cattle on feed Dec. 1 in feedlots was 11.52 million head (feedlots with a capacity if 1,000 head or more). That’s 8.1% more than last year (+864,000 head), about 1.5% more than expectations.
At least frozen beef stocks shouldn’t add extra pressure, according to USDA’s monthly Cold Storage report, also released on Friday.
Total pounds of beef in freezers Nov. 30 were 4% less than the previous month and 8% less than the previous year.
Frozen pork supplies were 16% less than the previous month and 3% less than last year.
Total red meat supplies in freezers were down 10% from the previous month and down 4% from last year.
Total frozen poultry supplies were 11% less than the previous month, but 15% more than a year earlier.