Cattle futures firmed Friday and gained back some of the steep losses from the previous two sessions, helped along by a bounce in wholesale beef values.
Live Cattle futures were an average of 91¢ higher. Feeder Cattle futures were an average of $1.01 higher (62¢ to $1.77 higher).
Week to week on Friday, Live Cattle futures closed an average of $2.61 lower and Feeder Cattle futures closed an average of $2.73 lower ($1.12 lower at the front to $3.47 lower at the back).
Negotiated cash fed cattle trade ranged from limited on good demand in the Southern Plains to light on good demand elsewhere through Friday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1-$2 higher in the Texas Panhandle at mostly $220/cwt., steady to $2 higher in Kansas at $220 and $1-$3 higher in the North at $228-$229. Dressed delivered prices were $3 higher at $358.
Choice boxed beef cutout value was $2.59 higher Friday afternoon at $352.49/cwt. Select was $3.21 higher at $342.39. Week to week on Friday, Choice was $6.52 higher and Select was $11.22 higher.
Estimated total cattle slaughter last week of 566,000 head was 7,000 head more than the previous week but 31,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 11.3 million head was 733,000 head fewer (-6.1%) than the same period last year. Estimated year-to-date beef production of 9.8 billion pounds was 262.7 million pounds less (-2.6%).
Grain and Soybean futures were lower Friday. Corn futures were mostly 2¢ to 3¢ lower, pressured by planting progress and Wheat futures, with Kansas City Wheat futures closing 7¢ to 11¢ lower. Soybean futures were fractionally higher to mostly 1¢ lower.
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Major U.S. financial indices closed sharply higher Friday as traders seemed emboldened to enter the weekend with optimism over trade deals.
The Dow Jones Industrial Average closed 331 points higher. The S&P 500 closed 41 points higher. The NASDAQ was up 98 points.
West Texas Intermediate Crude Oil futures (CME) closed 50¢ to 87¢ higher through the front six contracts.
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USDA’s Economic Research Service increased projected feeder steer prices significantly for the remainder of this year, compared to the previous month, in the latest Livestock, Dairy and Poultry Outlook.
Based on recent price data, assumed adequate forage supplies, and the suspension of feeder cattle from Mexico, ERS increased the projected second-quarter feeder steer price by $30 to $310/cwt. Third- and -fourth quarter prices increased $20 to $302 and $306, respectively. ERS increased the projected annual average feeder steer price by $17.50 to $298.53. Prices are basis a Medium and Large #1 steer weighing 750-800 lbs., selling at Oklahoma City.
As reported in Cattle Current Previously, USDA’s Economic Research Service projected this year’s weighted average five-area direct fed steer price significantly higher than the previous month, in the May World Agricultural Supply and Demand Estimates (WASDE).
Based on recent price strength through early May and tighter fed cattle supplies expected during the second half of the year, projected prices increased $13 in the second quarter to $217/cwt., $10 in the third quarter to $216 and $13 in the fourth quarter to $220. The projected annual average price increased $9 to $214.51.
Beef production for 2025 was projected at 26.4 billion pounds, which was 277 million pounds less than the previous month (-1%). The total would be 561 million pounds less than the prior year (-2.1%). Beef production was forecast lower on tighter cattle supplies, fewer available fed steers and heifers due to import restrictions on cattle from Mexico and reduced slaughter of cattle.