Cattle futures closed mostly higher Friday, ahead of the monthly Cattle on Feed report which turned out to be market friendly (see below).
Live Cattle futures were an average of 28¢ higher, except for unchanged and 10¢ lower in two contracts. Feeder Cattle futures were an average of $1.34 higher. Week to week on Friday, Live Cattle futures closed an average of $2.16 higher and Feeder Cattle futures were an average of $6.48 higher.
Negotiated cash fed cattle trade was mostly inactive on light demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
The previous week, FOB live prices were $225-$227/cwt. in Nebraska and mainly $224 in the western Corn Belt. Dressed delivered prices were $350-$355 in Nebraska and mainly $350 in the western Corn Belt.
Choice boxed beef cutout value was $3.68 lower Friday afternoon at $365.79/cwt. Select was $2.28 higher at $352.69. Week to week on Friday, Choice boxed was $6.52 lower and Select was 36¢ lower.
Estimated total cattle slaughter last week of 546,000 head was 7,000 head fewer than the previous week and 27,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 22.2 million head was 1.7 million fewer (-7.2%) than the same week last year. Estimated year-to-date beef production of 19.8 billion pounds was 1 billion pounds less (-5%) than the same time last year.
Grain and Soybean futures were mixed Friday.
Corn futures were mostly 3¢ to 4¢ lower with continued harvest pressure.
Kansas City HRW Wheat futures were mostly 1¢ to 3¢ lower.
Soybean futures were mostly 2¢ to 5¢ higher, buoyed by exports
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Major U.S. financial indices were lower Friday, weighed down by higher oil prices and economic worry.
The Dow Jones Industrial Average closed 652 points lower. The S&P 500 closed 39 points lower. The NASDAQ was down 53 points.
West Texas Intermediate crude oil futures (CME) were $1.82 to $3.80 higher through the front six contracts.
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Markets will likely view USDA’s monthly Cattle on Feed report as friendly with fewer placements and a lower on-feed inventory than expected.
Feedlots with 1,000 head or more capacity placed 1.8 million head in September, which was 244,000 head fewer (-12.1%) year over year and 3.8% less than average analyst estimates ahead of the report. Placements were the lowest for the month since the data series began in 1996.
In terms of placement weights, 35% went on feed weighing 600-699 lbs., 700-899 lbs. weighing 700-899 lbs. and 20% weighing 900 lbs. or more.
Marketings in September of 1.5 million head were 108,000 head fewer (-6.6%) than the same time last year, which was also the fewest since the data series began, but in line with pre-repot expectations.
On-feed inventory Oct. 1 of 11.4 million head were 46,000 fewer year over year (-0.4%), which was 0.7% less than expected. There were 4.3 million heifers on feed Oct. 1 which was 55,000 head fewer (-1.3%) than a year earlier.
“The percentage of heifers on feed in October was 37.8%, which is down slightly from 38.1% last year but well above the 32% to 34% range that was reported during the herd rebuilding era in 2015 and 2016,” according to Livestock Marketing Information Center (LMIC analysts) in the Oct. 23 Livestock Monitor.