Negotiated cash fed cattle prices were $2 higher in Kansas through Friday afternoon at $137/cwt. That was on slow to moderate trade and moderate demand, according to the Agricultural Marketing Service. There were also a few trades in the Texas Panhandle at $137, but too few to trend; established trade for the week was $1 higher at $136.
Elsewhere, trade ranged from mostly inactive on light demand to a standstill. For the week, live prices were $3 higher in Nebraska at $142-$143 and $2 higher in the western Corn Belt at $142-$143. Dressed prices were $3-$4 higher at $225-$226.
Choice Boxed beef cutout value was 22¢ higher Friday afternoon at $271.32/cwt. Select was 72¢ lower at $248.89.
Estimated total cattle slaughter last week of 674,000 head was 71,000 more than the previous holiday-shortened week and 4,000 head more than the same week last year. Estimated year-to-date total cattle slaughter of 14.9 million head is 149,000 head more than last year. Estimated year-to-date beef production of 12.4 billion lbs. is 129 million lbs. more than last year.
Cattle futures softened Friday, pressured by sharply lower outside markets and likely week-end profit taking.
Feeder Cattle futures closed an average of $1.07 lower (75¢ to $1.55 lower).
The CME Feeder Cattle Index closed $7.58 higher week to week on Thursday at $161.87/cwt.
Live Cattle futures closed an average of 64¢ lower, from 50¢ lower at the back to $1.00 lower toward the front.
Corn futures closed mostly 3¢ to 6¢ higher.
Soybean futures closed mostly 14¢ to 20¢ lower.
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Major U.S. financial indices plunged Friday on higher inflation than expected. The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0% in May on a seasonally adjusted basis after rising 0.3% in April, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 8.6% before seasonal adjustment
A closely watched gauge of consumer confidence added pressure. Consumer sentiment declined 14% month to month in June and was 41% lower year over year, according to the University of Michigan Consumer Sentiment Index.
The Dow Jones Industrial Average closed 880 points lower. The S&P 500 closed 116 points lower. The NASDAQ was down 414 points.
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USDA’s Economic Research Service (ERS) left the projected fed steer price for this year unchanged, despite higher forecast beef production, in the latest monthly World Agricultural Supply and Demand Estimates (WASDE).
ERS forecast the five-area direct average fed steer price for this year at $140.10/cwt. Prices are forecast at $140 in the second quarter, $136 in the third quarter and $145 in the fourth quarter. Next year’s average price was projected at $153.
Projected beef production this year increased 65 million lbs. to 27.9 billion lbs., on increased fed cattle and cow slaughter. The total would be just 41 million lbs. less than last year. Beef production next year was projected to be 1.96 billion lbs. (-7.0%) less than this year at 25.9 billion lbs.
Total U.S. red meat and poultry production for 2022 was forecast 136 million lbs. more than the previous month at 106.5 billion lbs., on increased beef and pork production. Next year’s total U.S. red meat and poultry production was projected at 105.3 billion lbs. which would be 1.12 billion lbs. less (-1.0%) than this year.
Corn
ERS left projected corn acreage and yield unchanged, but increased beginning and ending stocks on reduced exports. The season-average farm price for corn received by producers was unchanged at $6.75/bu.
Soybeans
Beginning and ending soybean stocks were projected lower on increased exports. The season-average soybean price was projected 30¢ higher at $14.70/bu.
Wheat
Projected ending wheat stocks were increased by 8 million bu. on slightly higher yield but still would be less than 2021-22. The projected 2022-23 season-average farm price was unchanged at $10.75/bu., compared to $7.70 for 2021-22.