Cattle futures were unable to build on recent gains Friday, bogged down by more political rhetoric (see below).
Live Cattle futures closed an average of 92¢ lower. Feeder Cattle futures closed an average of $1.68 lower.
Week to week on Friday, Live Cattle futures were an average of $2.88 lower, except for an average of 60¢ higher in the back two contracts. Feeder Cattle futures were an average of $5.54 lower.
Negotiated cash fed cattle trade was light on light demand in the North through Friday afternoon, according to the Agricultural Marketing Service. For the week, FOB live prices were $4-$7 lower in the North at $218-$222/cwt., with the highest prices paid late in the week. Dressed delivered prices were mostly $345, which was $10-$11 lower. There was no established trade in the Southern Plains.
Choice boxed beef cutout value was $5.13 lower Friday afternoon at $376.23/cwt. Select was $1.89 higher at $361.08. Week to week on Friday, Choice was $9.46 lower and. Select was 24¢ lower.
Estimated total cattle slaughter last week of 542,000 head was 19,000 head more than the previous week. Estimated year-to-date total cattle slaughter of 17.9 million head was 1.5 million head fewer (-7.9%) than the same time last year. Estimated year-to-date beef production of 16 billion pounds was 915.2 million pounds less (-5.4%).
Grain and Soybean closed expanded gains on Friday.
Corn futures were mostly 1¢ to 4¢ higher. Week to week on Friday, they were an average of 26’2¢ higher through the front six contracts. That’s an average of about 49¢ higher in those same two contracts over the past two weeks.
Soybean futures were mostly 15¢ to 19¢ higher.
Kansas City HRW Wheat futures were 10¢ to 24¢ higher through Dec ‘27 on continued war premium.
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Major U.S. financial indices eased lower Friday, pressured by inflation concerns.
The Dow Jones Industrial Average closed 9 points lower. The S&P 500 closed 19 points lower. The NASDAQ was down 138 points.
West Texas Intermediate Crude Oil futures (CME) closed narrowly mixed, from 13¢ lower to 3¢ higher through the front six contracts.
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Another day, and another market-depressing idea from the U.S. president to address high beef prices.
President Trump signed a proclamation last Wednesday to waive of out-of-quota tariffs for 90 days on up to 300,000 metric tons of imported lean beef trimmings for ground beef to be sold at a discounted price.
On Friday, the President said via social post, in part, “I am authorizing legal documents to be drawn in order to allow farmers and ranchers to be given the right to process their own food…”
Farmers and ranchers already possess this right, of course. The right to process it and sell it without state and/or federal safety inspection is another matter.
Agriculture Secretary, Brooke Rollins, followed with her own social post, saying major announcements would be coming Monday, including waiving red tape in processing.
The National Cattlemen’s Beef Association (NCBA) issued this statement Friday morning:
“NCBA strongly supports increasing competition in the cattle markets and creating more opportunities for small and regional beef processors. We also support eliminating unnecessary regulations that make it harder for those businesses to compete. However, weakening federal meat inspection and food safety standards, as President Trump has suggested, is not the answer.
“For generations, cattle producers have invested in building consumer confidence in American beef and creating the gold standard of food safety systems. Putting that trust at risk in pursuit of a short-term political solution would be a serious mistake. Beef sold to American consumers should continue to meet rigorous, science-based food safety and inspection standards, regardless of the size of the processor.
“In just the past week, cattle producers have faced government intervention aimed at increasing foreign beef imports at prices below current levels. Now we are faced with another proposal aimed at changing how beef is processed. Constant government interference creates uncertainty for producers making long-term decisions about their businesses and the future of the cattle herd.
“If the Administration wants to help cattle producers, it should focus on reducing legitimate regulatory burdens, lowering fuel and fertilizer prices, protecting the U.S. cattle herd from foreign animal disease, and expanding opportunities for mid-size and regional cattle processors.
“America’s farmers and ranchers know how to produce safe, high-quality beef. American consumers trust the beef we produce. Washington needs to stop trying to manage the cattle business and let the market work.”