Cattle futures closed lower Friday, pressured by the lack of direction from negotiated cash fed cattle trade before the close, the Cattle on Feed report (see below) issued after the close of trade and wariness over the union at the JBS plant in Greeley voting whether to strike.
Live Cattle futures were an average of $1.35 lower. Feeder Cattle futures were an average of $2.57 lower. Week to week on Friday, Live Cattle futures closed an average of $1.08 higher (17¢ to $3.50 higher), except for an average of 14¢ lower in the back two contracts. Feeder Cattle futures closed an average of 98¢ higher (30¢ higher at the back to $1.87 higher in spot Mar).
Negotiated cash fed cattle trade was limited on moderate demand in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. Trade was moderate on moderate to good demand in Nebraska and moderate to active on good demand in the western Corn Belt.
The only established trends were in the western Corn Belt, where FOB live prices were $1-$2 higher at $245-$247/cwt. and dressed delivered prices were $6-$8 higher at $388.
There was some dressed trade in Nebraska at $388, but there were too few transactions to trend. FOB live prices there the previous week were mostly $245.
Also, for the previous week, FOB live prices were mostly $248 in the Southern Plains.
Choice boxed beef cutout value was $1.53 higher Friday afternoon at $366.70/cwt. Select was 95¢ higher at $360.74. Week to week on Friday, Choice was $2.23 higher but Select was $2.68 lower.
Estimated total cattle slaughter last week of 516,000 head was 25,000 head fewer than the previous week and 49,000 head fewer than the same week last year. Estimated total year-to-date cattle slaughter of 3.9 million head was 450,000 head fewer (-10.3%) than the same time last year. Estimated year-to-date beef production of 3.5 billion pounds was 313.2 million pounds less (-8.2%).
Grain futures were higher on Friday.
KC HRW Wheat futures were mostly 5¢ to 8¢ higher with short covering and weather premium.
Corn futures were mostly 1¢ to 3¢ higher, supported by higher Wheat futures.
Soybean futures were 1¢ to 3¢ lower through Mar ‘27 with uncertainty about the Supreme Court decision to overrule President Trump’s reciprocal trade tariffs and the potential impact on trade agreements with China.
******************************
Major U.S. financial indices closed higher Friday after the Supreme Court ruled against many of President Trump’s sweeping tariffs he imposed with the International Emergency Economic Power Act. Before then disappointing economic data held indices lower.
Real gross domestic product (GDP) increased at an annual rate of 1.4% in the fourth quarter last year, according to the advance estimate released by the U.S. Bureau of Economic Analysis. Real GDP increased 4.4% in the third quarter.
Compared to the third quarter, the deceleration in real GDP in the fourth quarter reflected downturns in government spending and exports and a deceleration in consumer spending that were partly offset by an acceleration in investment.
The Dow Jones Industrial Average closed 230 points higher. The S&P 500 closed 47 points higher. The NASDAQ was up 203 points.
West Texas Intermediate Crude Oil futures (CME) were narrowly mixed through the front six contracts, from 4¢ lower to 8¢ higher.
******************************
Markets will likely view USDA’s latest Cattle on Feed report as neutral, coming in near pre-report expectations.
Feedlots with 1,000 head or more capacity placed 1.7 million head in January, which was 86,000 head fewer (-4.7%) than the same time last year.
In terms of placement weights, 42% went on feed weighing 699 lbs. or less, 48% weighing 700-899 lbs. and 10% weighing 900 lbs. or more.
Feedlots marketed 1.6 million head in January, which was 243,000 head fewer (-13%) less.
Cattle on feed Feb. 1 of 11.5 million head were 211,000 head fewer (-1.8%).