Cattle futures were able to fade early pressure from President Trump’s announcement to waive tariffs for 90 days on imported beef products for ground beef (see below).
Live Cattle futures closed an average of 78¢ higher, except for an average of 19¢ lower in the front two contracts.
Feeder Cattle futures closed an average of $1.27 higher, except for 55¢ lower in spot Aug.
Negotiated cash fed cattle trade was light to limited on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
Based on the last established trade for the week, FOB live prices were mostly $225-$226/cwt., which was $2-$3 lower in Nebraska and $3-$4 lower in the western Corn Belt. Dressed delivered trades were $6-$12 lower in Nebraska at mostly $356 and mainly $7-$13 lower in the western Corn Belt at mostly $355. FOB live prices in Kansas the previous week were $228.
Choice boxed beef cutout value was $4.24 lower Friday afternoon at $385.69/cwt. Select was $2.42 lower at $361.32. However, week to week on Friday, Choice was $10.39 higher and Select was $10.08 higher.
Estimated total cattle slaughter last week of 223,000 head was 6,000 head more than the previous week but 33,000 head less than the same week last year. Estimated year-to-date cattle slaughter of 17.4 million head was 1.5 million head fewer (-8%) than the same time a year earlier. Year-to-date estimated beef production of 15.5 billion pounds was 900.5 million pounds less (-5.5%).
Corn and Soybean futures edged higher Friday, with follow-through support from the week’s Pro Farmer yield. estimates.
Corn futures closed 5¢ higher through Jly ’27 and then 2¢ to 6¢ higher.
Soybean futures closed mostly 1¢ to 2¢ higher.
Kansas City HRW Wheat closed 3¢ to 6¢ lower through Jly ’27 and then mostly 2¢ lower.
******************************
Major U.S. financial indices closed higher Friday, trying to recover from the week’s pressure driven by higher treasury yields.
The Dow Jones Industrial Average closed 517 points higher. The S&P 500 closed 33 points higher. The NASDAQ was up 113 points.
West Texas Intermediate Crude Oil futures (CME) closed 17¢ to 35¢ higher through the front six contracts.
******************************
Markets could view the latest Cattle on Feed report as friendly with fewer placements than expected.
Feedlots with 1,000 head or more capacity placed 1.4 million head in July, which was 176,000 head fewer (-11%) than the previous year and 4.5% less than the average of analyst expectations ahead of the report.
In terms of placement weights, 37% went on feed weighing 699 lbs. or less, 45% weighing 700-899 lbs. and 18% weighing 900 lb. or more.
Marketings in July of 1.6 million head was 129,000 head fewer (-7.4%) year over year, which was in line with expectations ahead of the report.
Cattle on feed Aug. 1 of 11.1 million head was 195,000 head more (1.8%) than the previous year and 0.7% less than expectations.
******************************
President Donald Trump announced a temporary 90-day waiver on out-of-quota tariffs for up to 300,000 metric tons of imported “product” for ground beef. The administration states the move aims to slash domestic consumer beef prices. According to his Truth social post, “We have a commitment that this beef will be sold at 25 percent below current market prices.”
The news pressured Cattle futures early in Friday’s session, as any hint of government intervention typically does. Cooler heads prevailed by the end the session, at least for the day.
“NCBA is disappointed by the President’s statement. While America’s cattle producers share the goal of keeping groceries affordable for consumers, flooding the market with government-subsidized, below-market beef is not the way to rebuild the American cattle herd,” said Colin Woodall, chief executive officer of the National Cattlemen’s Beef Association (NCBA), following Friday’s announcement. “Cattle markets have already turned sharply lower this morning, to the detriment of farmers and ranchers. This is a critical time of year for cattle producers, as we approach the season where they are making decisions regarding their herds. Cattle farmers and ranchers are responding to strong market signals and historically high demand, and we are already working to rebuild after years of ongoing drought, high input costs and other challenges that have reduced U.S. cattle numbers. Today’s announcement and other market interventions throw cold water on the prospect of herd expansion and sacrifices long-term stability for short term messaging.”