Other than a few live trades reported in Nebraska at $109/cwt.—too few to trend—negotiated cash fed cattle trade remained undeveloped through late Friday afternoon.
Cattle futures found some traction late in the session, though, perhaps tied to confirmation of fewer year-over-year feedlot placements. The monthly Cattle on Feed report (see below), came out during trading hours. Overall, trade was sluggish ahead of the holiday weekend.
Other than 25¢ and 2¢ higher at either end of the board, Live Cattle futures closed an average of 58¢ higher.
Feeder Cattle futures closed an average of $1.28 higher.
Boxed beef cutout values were weak to lower Friday on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service (AMS).
Choice boxed beef cutout value was $1.57 lower in the afternoon at $227.43/cwt. Select was 31¢ lower at $204.62.
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Major U.S. financial indices closed mostly lower Friday, pressured by softer oil prices, tied to reports that OPEC will increase production. CME Crude Oil futures (WTI) closed $2.15 Lower (May ’19) to $2.83 lower (spot Jul). There was also ongoing uncertainty, following President Trump cancelling the meeting with North Korea’s leader.
The Dow Jones Industrial Average closed 58 points lower. The S&P 500 closed 6 points lower. The NASDAQ closed 9 points higher.
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Logic suggests the market will view Friday’s Cattle on Feed report as neutral to perhaps a touch bearish, with numbers mostly in line with expectations ahead of the report.
Placements in April of 1.695 million head were 8.28% less than the previous year (153,000 head fewer). That’s about 1% more than estimates ahead of the report. In terms of weights, 42.45% were placed at weights of 699 lbs. or less; 50.73% at weights of 700-899 lbs.; 16.81% weighing 900 lbs. or more.
Marketings in April of 1.803 million head were 5.87% more than last year (100,000 head more).
Total cattle on feed May 1—feedlots with 1,000 head or more capacity—of 11.558 million head were 5.09% more than the previous year (560,000 head more). That’s the second most cattle on feed May 1 since the series began in 1996, according to the National Agricultural Statistics Service.