Feeder Cattle futures tanked Friday with pressure from Corn futures surging in response to USDA’s Grain Stocks report Friday (see below).
Corn futures closed 5¢ to 8¢ higher through Jly ’23 and then 2¢ to 3¢ higher.
Feeder Cattle futures closed an average of $2.68 lower.
Live Cattle futures closed an average of 53¢ lower (17¢ to 85¢ lower), except for unchanged in the back contract.
Soybean futures closed 32¢ to 46¢ lower through Aug. ’23 and then mostly 21¢ to 25¢ lower, reacting to softer oil prices and the Grain Stocks report.
Negotiated cash fed cattle trade ranged from mostly inactive with light demand to limited on light demand through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, live prices were steady at $143/cwt. in the Southern Plains and at $144-$145 in Nebraska. Prices were steady to $3 lower in the western Corn Belt at $145. Dressed prices were steady to $1 higher in Nebraska at $228-$233 and at the bottom of last week’s range in the western Corn Belt at $228.
Choice boxed beef cutout value was $2.33 lower Friday afternoon at $243.75/cwt. Select was 35¢ higher at $220.13.
Estimated total cattle slaughter was 3,000 head less week over week at 664,000 head, but was 24,000 head more than the same week last year. Year-to-date estimated total cattle slaughter of 25.36 million head was 385,000 head more (+1.5%) than the same time last year. Estimated total year-to-date beef production of 20.91 billion lbs. was 282 million lbs. more (+1.4%).
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Major U.S. financial indices continued to fall Friday with growing concerns about inflation and tightening monetary policy squelching economic growth here and abroad. The Personal Consumption Expenditure (PCE) Index excluding food and energy grew 0.6% from July to August, which was more than anticipated. Year over year, the PCE was 4.9% higher, according to the U.S. Bureau of economic analysis.
The Dow Jones Industrial Average closed 500 points lower. The S&P 500 closed 54 points lower. The NASDAQ was down 161 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.61 to $1.74 lower through the front six contracts.
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Old crop corn stocks stored in all positions on Sept. 1 totaled 1.38 billion bu., up 12% year over year, but less than trade expectations, according to USDA’s quarterly Grain Stocks report. Of the total stocks, 510 million bu. were stored on farms, which was 29%. more than a year earlier. Off-farm stocks of 867 million bu. were 3% more than the prior year.
NASS analysts say 2021 corn production was revised 41.4 million bu. lower with downward revisions in planted area (93.3 million acres), harvested area (85.3 million acres) and grain yield (176.7 bu./acre).
Old crop soybean stocks of 274 million bu. stored in all positions on Sept. 1 were 7% more than the previous year and more than the trade expected.
Soybean stocks stored on farms totaled 62.9 million bu., down 8% from a year ago. Off-farm stocks of 211 million bu. were 12% more year over year.
Soybean production was 30.2 million bu. more with harvested area revised higher (86.3 million acres), as well as yield (51.7 bu./acre).
All wheat stored in all positions Sept. 1 totaled 1.78 billion bu., which was less than 1% more than the previous year and in line with trade expectations.
On-farm wheat stocks were estimated at 591 million bu., up 41% from last September. Off-farm stocks of 1.18 billion bu. were 13% less than a year earlier.