Negotiated cash fed cattle prices ended up lower last week: $1 lower in the Southern Plains on a live basis at $119/cwt.; steady to $3 lower in Nebraska at $122-$123; $1 lower in the western Corn Belt at $124. Dressed trade was $1-$7 lower in Nebraska at $195; $1-$2 lower in the western Corn Belt at $195.
Through Thursday, the five-area average direct fed steer price was $120.65/cwt. on a live basis, which was $2.15 less than the previous week. The average steer price in the beef was $196.79, which was 96¢ less.
Cattle futures, especially Feeder Cattle gained Friday, buoyed by lower Corn futures and expectations of a friendly Cattle on Feed report (see below).
Feeder Cattle futures closed an average of $1.76 higher across the board.
Live Cattle futures closed an average of 46¢ higher through Aug ’22; then down 30¢-45¢ in the back contracts.
Choice boxed beef cutout value was 49¢ higher Friday afternoon at $266.63/cwt. Select was 17¢ higher at $249.94/cwt.
Estimated total cattle slaughter last week was 652,000 head, which was 1,000 head fewer than the previous week. Year-to-date estimated total cattle slaughter of 18.60 million head is 820,000 head more (+4.61%) than the same period last year.
Positive weather expectations and lower weekly exports pressured Grain futures Friday.
Corn futures closed down 10¢ to 18¢ through the front six contracts, then down 1¢ to 9¢ through Dec ’23.
Soybean futures closed down 10¢ to 15¢ in the through Jan ’22, then down 3¢ to 6¢.
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Major financial indices closed at record highs on Friday with more corporate profits beating Wall Street estimates. The Dow Jones closed above 35,000 for the first time.
The Dow Jones Industrial Average closed 238 points higher. The S&P 500 closed 9 points higher. The NASDAQ was up 53 points.
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Both the latest Cattle on Feed and Cattle inventory reports should be price-supportive.
Cattle feeders (feedlots with 1,000 head or more capacity) placed 1.67 million head in June, which was 7.1% less (128,000 head fewer) than last year and 1.3% less than average expectations heading into the report.
In terms of weights, 36.2% went on feed weighing 699 lbs. or less, 46.8% weighing 700-899 lbs. and 17.1% weighing 900 lbs. or more.
Marketings in June were 2.02 million head, which was 2.7% more (53,000 head more) than the previous year and in line with expectations.
Total cattle on feed July 1 of 11.29 million head were 1.3% less (148,000 head fewer) than the previous year, also in line with pre-report expectations.
Beef Cows 2% Less
USDA’s semiannual Cattle report published Friday offers the first insight to the potential degree of herd contraction for the year.
There were 31.4 million beef cows July 1, which was 650,000 head fewer (-2.03%) than the same time a year earlier.
Beef heifers retained for replacement were 4.3 million head, which was 100,000 head fewer (-2.27%) than the previous year.
The calculated number of calves outside feedlots July 1 of 36.1 million head was 600,000 head fewer (-1.63%) than the same time last year.
Total cattle and calves, including dairy, was 100.9 million head, which was 1.3 million head fewer (-1.27%) than the previous year.