Cattle futures closed lower Friday on likely profit taking from the week’s strong gains.
Live Cattle futures closed an average of 77¢ lower. Feeder Cattle futures closed an average of $1.06 lower.
Week to week on Friday, Live Cattle futures closed an average of $5.81 higher. Feeder Cattle futures closed an average of $10.74 higher.
Negotiated cash fed cattle trade was mostly inactive on light to moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
Based on the last established trade for the week, FOB live prices were $10 higher in the Southern Plains at $256/cwt., $11 higher in Nebraska at $257 and $9-$11 higher in the western Corn Belt at $255-$257. Dressed delivered prices were $14 higher at $400.
Choice boxed beef cutout value was 41¢ lower Friday afternoon at $389.11/cwt. Select was $1.12 lower at $387.05. Week to week on Friday, Choice was $2.11 higher, and Select was 98¢ higher.
Estimated total cattle slaughter last week of 534,000 head was 15,000 head more than the previous week but 29,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 9.2 million head was 971,000 head fewer (-9.6%) than the same time last year. Estimated year-to-date beef production of 8.2 billion pounds was 621.2 million pounds less (-7%) than a year earlier.
Grain and Soybean futures closed higher on Friday.
Kansas City HRW Wheat futures closed mostly 1¢ to 4¢ higher after the previous session’s profit taking.
Corn futures closed mostly 3¢ to 4¢ higher, supported by higher Soybean futures and likely inflationary speculation. Week to week on Friday, Corn futures closed 14’5¢ higher through the front six contracts. Those contracts gained an average of 21’3¢ over the past two weeks.
Soybean futures closed 5¢ to 12¢ higher, boosted by Soybean oil prices and weather premium based on wet, cold conditions.
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Major U.S. financial indices closed mixed Friday, as Crude Oil prices weakened and tech stocks gained.
The Dow Jones Industrial Average closed 152 points lower. The S&P 500 closed 21 points higher. The NASDAQ was up 222 points.
West Texas Intermediate Crude Oil futures (CME) closed 84¢ to $3.13 lower through the front six contracts.
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The National Cattlemen’s Beef Association (NCBA) endorsed the Fair and Accurate Ingredient Representation on Labels (FAIR Labels) Act introduced to the U.S. House and Senate last week, which would ensure consumer transparency by addressing the labeling of cell-cultivated protein and plant-based alternative protein products.
“Currently, there is no federal statute for labeling cell-cultivated protein products in the marketplace. For far too long, lab-grown protein companies have exploited the use of terms like “meat” and “beef” to describe their products, creating the potential for consumer confusion through misleading marketing,” says Gene Copenhaver, NCBA president and Virginia cattle producer. “The FAIR Labels Act will establish a federal guideline for labeling cell-cultivated and plant-based alternative protein products, ensuring consumers can easily differentiate these products from real beef products produced by U.S. cattlemen and cattlewomen. We thank these members of the House and Senate for their efforts to protect truthful beef labeling and deliver clarity in the marketplace.”
Among other things, the FAIR Labels Act would require lab-grown protein products to bear the label, “cell-cultivated protein.” The Act would also require plant-based “meat” products to bear the label, “plant-based alternative protein” and mandate cell-cultivated and plant-based protein products include a disclaimer, noting the product in its final form was not derived from a live animal.
“For years, lab-grown and plant-based protein products have used traditional beef labeling terms, creating confusion for consumers,” says Ethan Lane, NCBA Senior Vice President of Government Affairs. “The FAIR Labels Act is a critical step toward protecting the integrity of real food animal products and ensuring consumers have clear, accurate information at the meat case. We welcome the growing bipartisan effort to address mislabeling on these manufactured products and encourage Congress to swiftly pass the FAIR Labels Act.”