Cattle futures closed mixed to higher Friday, buoyed by higher cash fed cattle prices and firmer wholesale beef values.
Live Cattle futures closed narrowly mixed from 13¢ lower to 28¢ higher.
Feeder Cattle futures closed an average of $1.13 higher with added support from lower Corn futures.
Negotiated cash fed cattle trade ranged from limited on light demand to moderate on moderate demand through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $1.50-$2 higher in the Texas Panhandle at $190/cwt., $2-$3 higher in Kansas at $190 and $2 higher in the North at $198. Dressed delivered prices were $2 higher at $312/cwt.
Choice boxed beef cutout value was $1.31 higher Friday afternoon at $313.77/cwt. Select was $2.35 higher at $297.46/cwt.
Estimated total cattle slaughter last week of 600,000 head was 16,000 head more than the previous week but 16,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 17.9 million head was 833,000 head fewer (-4.5%) than the same period last year. Estimated year-to-date beef production of 15.1 billion pounds was 236.9 million pounds less (-1.5%).
Grain futures closed lower Friday with likely profit taking, producer selling and a more favorable weather outlook.
Soybean futures closed 22¢ to 38¢ lower. Corn futures closed 9¢ to 11¢ lower through Jly ’25 and then mostly 6¢ to 8¢ lower. KC HRW Wheat futures closed 10¢ to 16¢ lower.
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Major U.S. financial indices closed higher Friday, supported by a favorable inflation reading.
The personal consumption expenditures price index rose 0.1% month to month in June was and was 2.5% higher year over year, according to the U.S. Bureau of Economic Analysis. That was in line with expectations.
Between cooling inflation and stronger economic growth than expected, investors are growing more confident in interest rate cuts.
The Dow Jones Industrial Average closed 654 points higher. The S&P 500 closed 59 points higher. The NASDAQ was up 176 points.
West Texas Intermediate Crude Oil futures on the CME closed 79¢ to $1.12 lower through the front six contracts.
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Besides their ongoing willingness to pay for beef at historically high retail prices, consumers also continue demanding higher quality.
“This point has been demonstrated and made evident the past couple of months when Prime grade beef prices have increased week over week, when other quality grades of beef declined the same week or when Prime grade beef price only experienced a small price decline when other grades of beef experienced larger price declines,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “To some degree, packers purchasing higher grading cattle tends to be a natural insulation or insurance to price changes in wholesale beef prices. Prime beef prices will still tend to move in the same direction as other beef prices, but they do not appear to have the same downside risk as other grades in the current market. As a reference point, the Prime beef cutout has averaged trading $22/cwt. higher than the Choice cutout the past three months.”