Cattle futures wobbled Friday with uneven outside markets and wonderment about the potential strike at the JBS plant in Greeley next week.
Live Cattle futures closed an average of 42¢ lower. Feeder Cattle futures were mixed, from an average of 64¢ lower to an average of 68¢ higher. Week to week on Friday, Live Cattle futures closed an average of $2.54 lower and Feeder Cattle futures closed an average of $7.26 lower.
Negotiated cash fed trade was limited on moderate to good demand in Kansas through Friday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some FOB live trades at $233-$235/cwt.
Elsewhere, trade was mostly inactive on light demand.
For the week, FOB live prices were mainly $5 lower at mostly $235 in Kansas, Nebraska and the western Corn Belt. Dressed delivered prices in the North were mainly $8 lower at mostly $372. The previous week, FOB live prices in the Texas Panhandle were $240.
Choice boxed beef cutout value was 83¢ higher Friday afternoon at $397.92/cwt. Select was 72¢ higher at $391.54. Week to week on Friday, Choice boxed beef cutout value was $10.00 higher and Select was $12.59 higher.
Estimated total cattle slaughter last week of 525,000 head was 4,000 head more than the previous week but 61,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 5.5 million head was 606,000 head less (-9.9%) than the same time last year. Estimated year-to-date beef production of 4.9 billion pounds was 406.8 million pounds less (-7.6%).
Grain futures were higher Friday, led by wheat.
Kansas City HRW Wheat futures closed 12¢ to 17¢ higher through Jly ‘27 then mostly 11¢ higher with likely short covering and perhaps some weather premium.
Corn futures were 2¢ to 4¢ higher through near Sep and then fractionally higher to 1¢ higher, helped along by higher crude oil prices.
Soybean futures closed 2¢ to 6¢ lower with likely profit taking.
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Major U.S. financial indices continued lower Friday as crude oil prices kept gaining.
The Dow Jones Industrial Average closed 119 points lower. The S&P 500 closed 40 points lower. The NASDAQ was down 206 points.
West Texas Intermediate Crude Oil futures (CME) were $1.24 to $2.98 higher through the front six contracts.
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U.S. beef exports continue to show resilience, despite the lack of access to Chinese markets, according to the latest data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports in January totaled 92,558 metric tons (mt), down 10% year-over-year. However, value fell just 3% to $780.1 million, as exports have commanded higher prices. Still, prices are not being maximized to the degree that would be possible with China back in the mix. When excluding China from the January results, exports increased 5% in volume and climbed 16% in value. January beef shipments trended higher year-over-year to Korea, Japan, Taiwan, the Caribbean, the ASEAN and South America, with export value also increasing to Mexico, Canada and Central America.
Beef export value per head of fed slaughter was more than $415, the highest since March and reflecting solid demand in other markets.
Beef variety meat exports in January increased 6% year over year to 27,511 mt, the most in more than four years. Beef variety meat export value soared 46% to a record $126 million.
“Beef variety meat value reaching new heights for the second consecutive month is great news for cattle producers and for the entire supply chain,” says Dan Halstrom, USMEF president and CEO. “With cattle numbers being tight, it is more critical than ever to maximize the value of every animal. And while much of this export growth was driven by tongues and skirts going to Japan, demand was strong in a wide range of markets.”
For broader perspective, U.S. pork exports trended higher year-over-year in January with volume 3% more than a year earlier at 250,861 mt and value 4% more at $692.1 million.