Cattle futures extended gains Friday, supported by steady negotiated cash fed cattle prices and a friendly quarterly Hogs and Pigs report indicating the breeding inventory was 1% less year over year.
Live Cattle futures were an average of $2.87 higher. Feeder Cattle futures were an average of $5.93 higher.
Week to week on Friday, Live Cattle futures closed an average of $4.26 higher. Feeder Cattle futures closed an average of $10.14 higher.
Negotiated cash fed cattle trade ranged from inactive on light demand in the Southern Plains to limited on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices in the North were steady at $235/cwt. and dressed delivered prices were steady at $372. FOB live prices were $235 in the Southern Plains the previous week.
Choice boxed beef cutout value was $3.12 higher Friday afternoon at $392.97/cwt. Select was $1.79 lower at $389.87. Week to week on Friday, Choice was $7.14 lower and Select was $2.37 lower.
Total estimated cattle slaughter last week of 520,000 head was 17,000 head more than the previous week but 89,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 6.5 million head was 745,000 head fewer (-10.2%) than the same time last year. Year-to-date estimated beef production of 5.96 billion pounds was 492.7 million pounds less (-7.8%).
Grain and Soybean futures were mixed Friday.
Kansas City HRW Wheat futures were 3¢ to 7¢ higher, as traders appeared to continue adding weather premium.
Corn and Soybean futures were lower with likely profit taking and perhaps positioning ahead of next week’s Prospective Plantings and Grain Stocks reports.
Corn futures were 3¢ to 5¢ lower through Jly ‘27. Soybean futures were 12¢ to 14¢ lower through the front three contracts and then 5¢ to 9¢ lower through Aug ‘27.
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Major U.S. financial indices sagged sharply lower again Friday with ongoing pressure from higher oil prices and inflation worries tied to the U.S. war with Iran.
The Dow Jones Industrial Average closed 793 points lower. The S&P 500 closed 108 points lower. The NASDAQ was down 459 points.
West Texas Intermediate Crude Oil futures (CME) were 20¢ lower to $5.16 higher through the front six contracts.
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The U.S. dairy herd continues to grow, due in part to the demand for dairy-beef calves.
“The February dairy herd tally was 9.615 million head, up 15,000 from January and 211,000 more than 12 months earlier,” according to analysts with the Livestock Marketing Information Center, in the latest Livestock Monitor. “This is the largest US dairy herd since January-March 1993 when the dairy herd stood at 9.632 million head. At that time, the dairy industry was in liquidation mode, and the herd would continue to shrink until 1999, when dairy cow numbers would stabilize at 9.1 million head.”
There were 9.57 million dairy cows in the U.S. inventory Jan. 1, which was 187,500 head more (2%) year over year, according to the USDA Cattle report.
The dairy cow herd is projected to average 9.57 million head this year, an increase of 30,000 head, according to USDA’s Economic Research Service (ERS), in the March Livestock, Dairy and Poultry Outlook.
“With lower dairy heifer replacement inventories, the expansion of the dairy herd (last year) was attained via reduced slaughter rates, as dairy farmers chose to keep their dairy cows longer, incentivized by robust demand for beef-on-dairy calves,” ERS analysts say. They add that dairy herd expansion is expected to continue into this year.