For another week, negotiated cash fed cattle trade remained undeveloped through Friday afternoon. Though way too few to trend, there were a few dressed trades in the western Corn belt Friday at $180, which was steady to $5 higher than the last established market in the region two weeks ago.
Lack of cash direction, and perhaps some defensive positioning ahead of the Cattle on Feed report (see below) applied some pressure to Cattle futures.
Live Cattle futures closed mixed, an average of 26¢ lower across the front half of the board, except for 2¢ higher in spot Aug, and then an average of to 36¢ higher in the back four contracts.
Feeder Cattle futures closed an average of 32¢ lower (5¢ to 77¢ lower).
Wholesale beef values were steady to weak on light to moderate demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 32¢ lower Friday afternoon at $204.17/cwt. Select was 8¢ higher at $197.00.
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Major U.S. financial indices closed slightly lower Friday, with strong quarterly earnings providing a counterweight to more trade worries.
The Dow Jones Industrial average closed 6 points lower. The S&P 500 closed 2 points lower. The NASDAQ was down 5 points.
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Traders should view Friday’s monthly Cattle on Feed report as neutral, coming in about dead-on with most pre-report estimates.
For feedlots with 1,000 head or more capacity, there were 1.79 million head placed on feed in June, which was 1.30% more than last year. By weight, 41.55% were placed at 699 lbs. or lighter; 42.48% at 700-899 lbs.; 15.90% at weights of 900 lbs. or heavier.
Marketings in June of 2.01 million head were 0.85% more than last year.
Cattle on feed July 1 of 11.28 million head was 4.26% (461,00 head) more than the previous year, and the most for the month since the data series began in 1996. The mix included 2% more steers than last year and 8% more heifers.
USDA also released the mid-year Cattle inventory report Friday. Depending on your leanings, there were no surprises.
All cattle and calves July 1 was estimated at 103.2 million head, which is 0.98% more (+1 million head) than the same time last year.
Beef cows of 32.5 million head are 0.93% more (+300,000 head ) than last year.
Beef replacement heifers of 4.6 million head are 2.13% less (-100,000 head) than last year.
This year’s calf crop is estimated at 36.5 million head, which would be 1.93% more (+691,800 head) than last year.