Cattle futures closed higher Friday on stronger wholesale beef values and the fact that USDA’s New World Screwworm update the previous day did not include reopening the U.S. border to Mexican cattle, as some had feared.
Live cattle futures closed an average of $3.43 higher. Feeder Cattle futures closed an average of $4.53 higher.
Week to week on Friday, Live Cattle futures were an average of $3.63 higher and Feeder Cattle futures were an average of $5.96 higher.
Negotiated cash fed cattle trade was mostly limited on light to moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were steady to $2 lower in Nebraska at $243-$245/cwt. and steady in the western Corn Belt at $240-$245. Dressed delivered prices were steady to $2 higher in Nebraska at $380-$385.
The previous week, FOB live prices were $235 in the Southern Plains. Dressed delivered prices in the western Corn Belt were $378-$385 in a light test.
Choice boxed beef cutout value was $6.78 higher Friday afternoon at $400.57. Select was $3.88 higher at $370.76. Week to week on Friday, Choice boxed beef cutout value was $21.73 higher and Select was $15.67 higher (see below).
Estimated total cattle slaughter last week of 530,000 head was 6,000 head fewer than the previous week and 75,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 18.3 million head was 1.3 million head fewer (-6.8%). Estimated year-to-date beef production of 15.9 billion pounds was 635.1 million pounds less (-3.8%).
Grain and Soybean futures closed higher Friday, building on the rally after the early-week drop tied to the monthly World Agricultural Supply and Demand Estimates.
Corn futures closed mostly 5¢ to 8¢ higher. Kansas City Wheat futures closed mostly 3¢ higher. Soybean futures closed 10¢ to 14¢ higher through Sep ’26 and then 7¢ to 8¢ higher.
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Major U.S. financial indices closed mostly lower Friday, with likely week-end profit taking.
The Dow Jones Industrial Average closed 34 points higher. The S&P 500 closed 18 points lower. The NASDAQ was down 87 points.
West Texas Intermediate Crude Oil futures (CME) closed average of 93¢ lower through the front six contracts.
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Consumer beef demand continues to power historically high cattle prices.
“Choice boxed beef prices have advanced more than $35/cwt. the past two weeks while the Select cutout has increased more than $27 over that same time period,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “One would have to assume this is being driven by Labor Day demand for beef, but these types of price surges cannot be overlooked as they may include some short covering. In this case, short covering is probably due to strong consumer demand. Ground beef tends to be the beef item of choice for the last grilling holiday of the summer, but ground beef alone is not what is driving the market price to increase 9-10% over a two-week period. The secondary impact of this is no relief in prices at the retail level. If the wholesale price remains elevated, then retailers will continue to increase the price consumers pay to put beef on the plate.”
For perspective, analysts with the Livestock Marketing Information Center (LMIC) explain the all-fresh beef retail beef price in July was $8.90 per pound, which was 75¢ per pound higher (9.2%) year over year.
“Year-over-year strength was seen across all cuts, with sirloin steaks up 15.6% to $13.55 per pound, ground beef advancing 12.2% to $6.50 per pound, roasts gaining 9.9% to $8.40 per pound and rounds moving 7.8% higher to $8.69 per pound,” LMIC analysts say, in the latest Livestock Monitor.
By way of comparison, LMIC analysts explain the average retail pork price in July was 9¢ higher (1.8%) at $5.01 per pound and the average composite retail broiler price was 7¢ higher (2.9%) at $2.48 per pound.
“Beef prices are record high, and there is lots of discussion about whether that can be sustained. However, it seems that changes in pork and poultry prices are having relatively little impact on beef demand,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.