WLI

Cattle futures closed higher Friday, helped along by stronger cash fed cattle prices to end the week, as well as weekly gains in Choice wholesale beef values.

Live Cattle futures closed an average of 56¢ higher. They were an average of $3.82 higher week to week on Friday.

Feeder Cattle futures closed an average of $2.07 higher. They were an average of $6.60 higher week to week.

Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Friday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were steady in the Southern Plains at $182/cwt., mostly $1-$2 higher in Nebraska at $184-$185 and steady to $2 higher in the western Corn Belt at $184-$186. Dressed delivered prices were $2 higher at $294-$295 in Nebraska and $294 in the western Corn Belt.

Choice boxed beef cutout value was 22¢ higher Friday afternoon at $297.14/cwt. Select was 94¢ lower at $288.72/cwt.

Estimated total cattle slaughter last week of 613,000 head was 7,000 head fewer than the previous week and 14,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 10.2 million head was 505,000 head fewer (-4.7%) than the same time last year. Year-to-date beef production of 8.5 billion pounds was 229.6 million pounds less (-2.6%).

Turning to row crops, KC HRW Wheat futures closed 11¢ to 14¢ higher. Corn futures closed mostly 1¢ to 3¢ lower. Soybean futures closed mixed, fractionally lower to 3¢ lower through Jan ’25 and then fractionally higher to 3¢ higher.

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Major U.S. financial indices closed higher Friday, supported by tech stocks and positive corporate earnings reports.

The Dow Jones Industrial Average closed 153 points higher. The S&P 500 closed 51 point higher. The NASDAQ was up 316 points.

West Texas Intermediate Crude Oil futures on the CME closed 28¢ to 48¢ higher through the front six contracts.

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USDA’s Animal and Plant Health Inspection Service (APHIS) issued its final rule for Animal Disease Traceability (ADT) Friday. For interstate movement, the rule requires official ear tags for certain classes of cattle and bison be readable both visually and electronically. The final rule applies to all sexually intact cattle and bison 18 months of age or older, all dairy cattle, cattle and bison of any age used for rodeo or recreation events, and cattle or bison of any age used for shows or exhibitions.

“USDA’s final traceability rule updates the existing requirement for animal identification that has been in place since 2013, switching from solely visual tags to tags that are both electronically and visually readable for certain classes of cattle moving interstate,” explains Mark Eisele, a Wyoming rancher and president of the National Cattlemen’s Beef Association (NCBA). “Many producers are already familiar with using these visual tags and under the new rule, they will instead use electronic tags. NCBA has worked hard to secure $15 million in funding for producers to reduce the cost of implementing this change. We also remain committed to safeguarding producers’ private data and continuing to reduce the cost of ear tags for farmers and ranchers. Our industry faces a tremendous threat from the risk of a future foreign animal disease on American soil. To avoid devastating financial losses during a potential outbreak and to help producers quickly return to commerce, we need an efficient animal disease traceability system.”

APHIS is currently providing electronic ID tags at no cost to producers. Producers should contact their State Veterinarian to obtain the free tags. The rule will not take effect for six months to provide time for producers to prepare.

“Rapid traceability in a disease outbreak will not only limit how long farms are quarantined, keep more animals from getting sick, and help ranchers and farmers get back to selling their products more quickly – but will help keep our markets open,” says Michael Watson, APHIS Administrator. 

One of the most significant benefits of the rule for farmers and ranchers will be the enhanced ability of the United States to limit impacts of animal disease outbreaks to certain regions, which is the key to maintaining our foreign markets, according to APHIS. By being able to readily prove disease-free status in non-affected regions of the nation, the U.S. will be able to request foreign trading partners recognize disease-free regions or zones instead of cutting off trade for the entire country. Traceability of animals is necessary to establish these disease-free zones and facilitate reestablishment of foreign and domestic market access with minimum delay in the wake of an animal disease event.

The final rule affects 11% of the U.S. cattle herd, according to NCBA.

More information is available at the APHIS ADT page.

Heading into Wednesday’s close, Cattle futures were sharply lower, pressured by news that viral fragments of Highly Pathogenic Avian Influenza (HPAI) were found in pasteurized milk during the ongoing investigation into Bovine Influenza A virus found in dairy cattle. Although there is no reason to doubt the safety of pasteurized milk, the headlines made traders skittish.

Feeder Cattle futures were an average of $2.32 lower.

Negotiated cash fed cattle trade and demand were moderate in the Southern Plains through Wednesday afternoon, according to the Agricultural Marketing Service. FOB live prices were steady at $182/cwt.

Elsewhere, trade ranged from mostly inactive on light demand to a standstill.

Last week, FOB live prices were mainly $183 in Nebraska and $184 in the western Corn Belt. Dressed delivered prices were $292-$293.

Choice boxed beef cutout value was $1.66 lower Wednesday afternoon at $295.74/cwt. Select was $2.34 lower at $290.42/cwt.

Heading into the close, wheat was higher again based on weather concerns.

Kansas City Wheat futures were 14¢ to 17¢ higher through Jly ‘25.

Corn futures were mostly 1¢ to 5¢ lower through Mar ‘25.

Soybean futures were mostly fractionally mixed through Jly ‘25.

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Major U.S. financial indices ended Wednesday little changed.

The Dow Jones Industrial Average closed 42 points lower. The S&P 500 closed 1 point higher. The NASDAQ was up 16 points.

Heading into the close West Texas Intermediate Crude Oil futures on the CME were 17¢ to 50¢ lower through the front six contracts.

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Total pounds of beef in freezers Feb. 29 were 6% less than the previous month and 12% less than a year earlier, according to the latest USDA Cold Storage report.

Frozen pork supplies were down 1% from the previous month and down 12% from last year.

Total red meat supplies in freezers were 4% less month to month and 13% less year over year.

Total frozen poultry supplies were down 1% from the previous month and down 5% from a year ago.

Cattle futures were mixed with Live Cattle taking a breather and awaiting weekly cash direction while last Friday’s Cattle on Feed report continued helping lift Feeder Cattle.

Feeder Cattle futures were an average of 69¢ higher. Live Cattle futures mixed, from an average of 63¢ lower in the front five contracts to an average of an average of 84¢ higher.

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were $182/cwt., in the Southern Plains, mostly $183 in Nebraska and $184 in the western Corn Belt. Dressed delivered prices were $292-$293.

Choice boxed beef cutout value was $1.47 higher Tuesday afternoon at $297.40/cwt. Select was 89¢ higher at $292.76/cwt.

Heading into the close Tuesday, Wheat futures were the grain the complex higher again, based on weather concerns and apparent short covering.

Kansas City Wheat futures were 11¢ to 13¢ higher through Jly ‘25.

Corn futures were mostly 1¢ to 3¢ higher through Jly ‘25.

Soybean futures were 1¢ to 5¢ higher through Nov ‘24.

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Major U.S. financial indices closed higher again Tuesday, fueled by strong quarterly corporate earnings.

The Dow Jones Industrial Average closed 263 points higher. The S&P 500 closed 59 points higher. The NASDAQ was up 245 points.

Heading into the close West Texas Intermediate Crude Oil futures on the CME were $1.01 to $1.44 higher through the front six contracts.

Cattle futures surged higher Monday, supported by Friday’s friendly Cattle on Feed report, which indicated fewer March placements than expected.

At the close and before final settlement, Live Cattle futures were an average of $2.56 higher and Feeder Cattle futures were an average of $3.71 higher.

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, FOB live prices were steady in the Southern Plains at $182/cwt., mostly $1 lower in Nebraska at mainly $183 and $1 lower in the western Corn Belt at $184. Dressed delivered prices were steady to $1 lower in Nebraska at $292-$293 and $1 lower in the western Corn Belt at $292 in a light test.

The weighted average five-area direct FOB live steer price last week was $1.17 lower at $182.67/cwt. The weighted average dressed delivered steer price was 74¢ lower at $292.35.

Choice boxed beef cutout value was 26¢ higher Monday afternoon at $295.93/cwt. Select was $1.04 higher at $291.87/cwt.

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Major U.S. financial indices closed higher Monday, supported by tech stocks and easing tension in the Middle East.

The Dow Jones Industrial Average closed 253 points higher. The S&P 500 closed 43 points higher. The NASDAQ was up 169 points.

Heading into the close West Texas Intermediate Crude Oil futures on the CME were 12¢ to 32¢ lower through the front six contracts.

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The latest Cattle on Feed report might be pointing toward moderating beef heifer liquidation.

“Heifers made up 38.5% of total feedlot inventories (April 1), down from 39.7% in January,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University. “While the heifer percentage in feedlots remains above the average of the past 10 years, the decline from January to April is an encouraging sign that heifer feeding is perhaps slowing. During rapid herd expansion in 2015-2017, the heifer percentage of feedlot inventories dropped below 34% and averaged below 33% for 10 consecutive quarters. Heifer feeding is expected to decrease significantly more in the coming months.”

Reflecting on Friday’s report in his weekly market comments, Peel also explains stubbornly high feedlot inventories stem more from the slower pace of marketings than placements.

In fact, Peel says monthly average feedlot placements (12-month moving average) in March were the least since April 2017. Total placements during the last six months are 2.3% less than the same period last year.

At the same time, the pace of marketing has declined faster than placements as dwindling numbers of cattle are being fed for longer periods.

“Feedlots have an incentive to keep inventories as close to capacity as possible. One way is to slow down the turnover rate, effectively making fewer cattle turn into larger inventories,” Peel explains. “The result is more days on feed and heavier carcass weights. Steer carcass weights have averaged 25 pounds heavier year over year for the past four weeks, with heifer carcasses over 21 pounds heavier. There are limits to how much feedlots can slow marketings, but feedlots are expected to push carcass weights as far as possible in the coming months. Feedlot inventories are expected to decline in the next few months despite feedlot actions to delay the inevitable.”