Daily Market Highlights

Negotiated cash fed cattle trade was slow to moderate with moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.

For the week, live prices in the Texas Panhandle were $2 higher (compared to two weeks earlier) at $180/cwt. Live prices in Kansas were unevenly steady at $180 (a few up to $187) with live delivered prices at $184-$185. Prices in Nebraska were mostly $2 higher at $188 with a few up to $190. In the western Corn Belt, live prices were mostly $3-$4 higher at $188.

Dressed prices (FOB) in Nebraska were $8-$10 higher at $300.

Choice boxed beef cutout value was 18¢ higher Friday afternoon at $302.74/cwt. Select was $2.02 higher at $276.73/cwt.

Estimated total cattle slaughter last week of 628,000 head was 5,000 head fewer than the previous week and 35,000 head fewer (-5.3%) than the previous year. Year-to-date estimated total cattle slaughter of 18.1 million head was 700,000 head fewer (-3.7%) than the same time last year. Estimated year-to-date beef production of 14.8 billion pounds was 735.5 million pounds less (-4.7%).

As for futures, Live Cattle futures closed an average of 40¢ lower Friday, except for an average of 6¢ higher in two contracts.

Conversely, stronger cash prices and softer Corn futures helped Feeder Cattle futures gain an average of $1.11. They could be challenged Monday, however, with what will likely be considered a bearish Cattle on Feed report (see below).

Corn futures softened again with likely profit taking. They closed 7¢ to 10¢ lower through Dec ‘24 and then 5¢ to 6¢ lower.

KC HRW Wheat closed mostly 14¢ to 15¢ lower.

Soybean futures closed mostly 1¢ to 2¢ lower, except for 6¢ and 2¢ higher in old-crop contracts.

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Major U.S. financial indices closed mixed and little changed Friday.

The Dow Jones Industrial Average closed 2 points higher. The S&P 500 closed 1 point higher. The NASDAQ was down 30 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.10 to $1.42 higher through the front six contracts.

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Markets will likely view Friday’s Cattle on Feed report as bearish with more June placements than expected.

Placements in feedlots with 1,000 head or more capacity were 1.68 million head in June, which was 44,000 head more (+2.7%) than the previous year. That was 4.6% more that the average of analyst expectations ahead of the report.

In terms of placement weights, 39% went on feed weighing 699 pounds or less, 45% weighing 700-899 pounds and 16% weighing 900 pounds or more.

Marketings in June of 1.96 million head were 104,000 head fewer (-5.0%) year over year, which was in line with pre-report estimates.

Cattle on feed July 1 of 11.20 million head were 201,000 head fewer (-1.8%) than the previous year, which was also in line with pre-report estimates.

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National beef cow liquidation continues, and heifer retention has yet to begin, according to Friday’s semiannual USDA Cattle report.

There were 29.4 million beef cows in the U.S. July 1, which was 800,000 head fewer (-2.6%) year over year. The number of beef replacement heifers was 100,000 head fewer (-2.4%) at 4.0 million head. This year’s calf crop was estimated to be 33.8 million head, which would be 664,500 head fewer (-1.9%) than the previous year.

The calculated number of cattle outside feedlots July 1 — calves under 500 pounds, other heifers and steers weighing more than 500 pounds — was 34.4 million, which was 1.3 million head fewer (-3.6%) than the same time last year.

Total cattle and calves in the U.S. July 1 of 95.9 million was 2.7 million fewer (-2.7%) than a year earlier.

Cattle futures strengthened during much of Thursday’s session but closed lower, perhaps with some defensiveness ahead of Friday’s Cattle on Feed report, as well as the Semiannual Cattle report. So far, these reversals have represented a breather rather than a top.

Live Cattle futures closed an average of 74¢ lower (35¢ to $1.05 lower).

Feeder Cattle futures closed an average of 71¢ lower (15¢ to $1.70 lower).

Negotiated cash fed cattle trade was slow to moderate in the western Corn Belt through Thursday afternoon, according to the Agricultural Marketing Service. Live prices were $3-$4 higher than last week at $188/cwt.

There were a few live sales in Nebraska at $188 on limited trade and light demand, but too few to trend.

Last week, live prices were $186/cwt. in Nebraska and $175-$184 in Kansas on a light test. Dressed prices were $290-$292 in Nebraska and $290-$295 in the western Corn Belt. Live prices in the Texas Panhandle the previous week were $178.

Choice boxed beef cutout value was $1.03 lower Thursday afternoon at $302.56/cwt. Select was $1.25 lower at $274.71/cwt.

Corn futures closed mostly 4¢ to 5¢ lower on likely profit taking.

KC HRW Wheat closed mixed, from 8¢ lower to 8¢ higher.

Soybean futures closed mixed, mostly 5¢ to 6¢ lower through Mar ’24 and then mostly 2¢ to 4¢ higher.

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Major U.S. financial indices closed mixed Thursday, amid mixed but mainly positive quarterly earnings reports.

The Dow Jones Industrial Average closed 163 points higher. The S&P 500 closed 30 points lower. The NASDAQ was down 294 points.

West Texas Intermediate Crude Oil futures (CME) closed 25¢ to 36¢ higher through the front six contracts.

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Friday’s semiannual USDA Cattle report should provide some insight to the degree of continued beef cow liquidation.

“Since January, slaughter data has indicated a 12% decline in beef cow slaughter,” say USDA Economic Research Service analysts, in the latest Livestock, Dairy and Poultry Outlook. “This is likely a combination of improving pasture conditions, sufficient reductions in animal units per acre on poorer pastures, and the prospect of improved profitability from selling calves. At the same time, dairy cow slaughter is up almost 6% year over year, but not by enough to offset the effect of declining beef cow slaughter on total cow slaughter. However, beef cow retention will likely cap cow slaughter for the foreseeable future.”

While beef cow slaughter is likely to decline more significantly in the second half of the year, it is unlikely to decline enough to come close to stabilizing the beef cow herd this year, according to Derrell Peel, Extension Livestock Marketing Specialist at Oklahoma State University, in his weekly market comments.

“There is no data currently to support the idea that heifer retention is under way, but it may have started with recent improvements in range and pasture conditions,” Peel says. The beef replacement heifer number in the upcoming report will be of keen interest and is likely to show a still smaller number compared to last year but could show a slight increase year over year if heifer retention has begun.”

Traders continued to add risk premium to grain and Soybean futures Wednesday.

Corn futures closed mostly 9¢ to 18¢ higher.

KC HRW Wheat closed 31¢ to 41¢ higher.

Soybean futures closed mostly 12¢ to 14¢ higher.

Higher Corn futures weighed on Feeder Cattle, which closed an average of 61¢ lower (27¢ to $1.20 lower), except for an average of 10¢ higher in the back two contracts.

However, recent cash strength and cattle feeders’ continued resolve to hold cattle helped push Live Cattle future an average of 43¢ higher (5¢ to 75¢ higher).

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

Last week, live prices were $186/cwt. in Nebraska, $184-$185 in the western Corn Belt and $175-$184 in Kansas on a light test. Dressed prices were $290-$292 in Nebraska and $290-$295 in the western Corn Belt. Live prices in the Texas Panhandle the previous week were $178.

Choice boxed beef cutout value was $1.09 lower Wednesday afternoon at $303.59/cwt. Select was 65¢ lower at $275.96/cwt.

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Major U.S. financial indices continued to gain Wednesday, as quarterly earnings continue to surpass expectations.

The Dow Jones Industrial Average closed 109 points higher. The S&P 500 closed 10 points higher. The NASDAQ was up 4 points.

West Texas Intermediate Crude Oil futures (CME) closed 22¢ to 40¢ lower through the front six contracts.

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The all-fresh aggregate retail beef price set a record in June at $7.57 per pound, which was 3¢ more than the previous monthly record established in October 2021, according to the Livestock Marketing Information Center (LMIC).

“Retail fresh beef prices are 3.1% higher than last year at this time,” LMIC analysts say in the latest Livestock Monitor. “Retail pork prices continued to decline, coming in at $4.68 per pound, about 5% lower than last June. Broiler retail prices ticked higher … Retail meat prices appear strong for beef and chicken, but domestic pork demand still seems to be struggling. Adding to pork complications is the new Prop 12 law, which will likely increase the amount of pork on the domestic market outside of California.”

Although the Consumer Price Index (CPI) continues to grow at a slowing pace, LMIC analysts note prices for food continued more than 5% higher year over year. They add that the meat index was only 0.6% higher.

Cash strength and weaker Corn futures helped lift Feeder Cattle futures Monday.

Feeder Cattle futures closed an average of $1.80 higher.

Live Cattle futures closed narrowly mixed, from an average of 18¢ lower in three contracts to an average of 34¢ higher (7¢ to 75¢ higher).

Apparently, the trade wasn’t buying reports of Russia pulling out of the Black Sea Grain initiative, set to expire on Tuesday without renewal. Grain futures were stronger right after the reports but lost ground throughout the session.

Corn futures closed mostly 6¢ to 8¢ lower.

KC HRW Wheat closed mostly 7¢ to 13¢ lower.

Soybean futures closed mostly 2¢ to 7¢ higher.

Negotiated cash fed cattle trade was inactive on very light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were generally $3 higher in Nebraska at $186/cwt., $1-$2 higher in the western Corn belt at $184-$185 and from $3 lower to $6 higher in Kansas at $175-$184. Dressed prices were steady to $2 higher in Nebraska at $290-$292 and steady to $5 higher in the western Corn Belt at $290-$295.

Live prices in the Texas Panhandle the previous week were $178.

The five-area direct weighted average fed steer price last week was $2.21 higher on a live basis at $184.27/cwt. The average fed steer price in the beef was $1.35 higher at $291.34.

Choice boxed beef cutout value was 84¢ higher Monday afternoon at $306.78/cwt. Select was 87¢ lower at $275.74/cwt.

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Major U.S. financial indices closed higher Monday ahead of this week’s bellwether quarterly corporate earnings reports.

The Dow Jones Industrial Average closed 76 points higher. The S&P 500 closed 17 points higher. The NASDAQ was up 131 points.

West Texas Intermediate Crude Oil futures (CME) closed 95¢ to $1.27 lower through the front six contracts.

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USDA will release the semiannual Cattle report Friday, which could provide some clues about the pace of further beef cow liquidation this year.

“The report is expected to show that herd liquidation continued in the first six months of the year but may slow in the remainder of the year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “There is no data currently to support the idea that heifer retention is under way, but it may have started with recent improvements in range and pasture conditions. The beef replacement heifer number in the upcoming report will be of keen interest and is likely to show a still smaller number compared to last year but could show a slight increase year over year if heifer retention has begun.”

Likewise, analysts with USDA’s Agricultural Marketing Service explain preliminary numbers for the first half of the year indicate yearling heifer slaughter was the most in 15 years, while year-to-date beef clow slaughter is the second most in 10 years,

“With that number of females going to market in the first half of the year, it will take a considerable amount of time to turn the tide and have more heifer retention,” AMA analysts say.

Moreover, AMS analysts point out significant drought persists broadly across key the cow-calf states of Kansas and Missouri and Nebraska, as well as parts of Texas.

“The cattle inventory report will show that the beef cow herd continued to decline in the first half of the year. While beef cow slaughter is down thus far — 12.0% less year over year in the first six months of the year — the current pace suggests a herd culling rate over 12% for the year. Beef herd expansion requires a herd culling rate below 10% and likely below 9% for a year or more,” Peel says.

While beef cow slaughter is likely to decline more significantly in the second half of the year, Peel explains, “It is unlikely to drop enough to come close to stabilizing the beef cow herd this year.”

Negotiated cash fed cattle trade was slow on light to moderate demand in Nebraska and the western Corn Belt through Friday afternoon, according to the Agricultural Marketing Service.

Live prices in the western Corn Belt were $183-$186/cwt., which was $1-$2 higher than the previous week when dressed prices were $290.

Although too few to trend, there were a few live sales in Nebraska at $186 and a few in the beef at $291. Prices the previous week were $183.00-$186.50 and $290, respectively.

Trade in the Southern Plains remained inactive on very light demand. Prices the previous week were $178.

Live Cattle futures closed higher Friday, buoyed by stronger cash prices in the North, dragging Feeder Cattle along.

Live Cattle futures closed an average of $2.02 higher ($1.15 at the back to $3.27 higher in spot Aug).

Feeder Cattle futures closed an average of $1.97 higher.

Choice boxed beef cutout value was 97¢ lower Friday afternoon at 305.94/cwt. Select was $3.57 lower at $276.61.

Estimated total cattle slaughter last week was 633,000, which was 94,000 head more than the previous holiday-shortened week. Estimated year-to-date total cattle slaughter was 17.5 million head, which was 662,000 head fewer (-3.6%). Estimated year-to-date beef production of 15 billion pounds was 709.6 million pounds less (-4.7%).

Turning to the grain complex, Grain and Soybean futures closed higher Friday, supported by the lower U.S. dollar and the looming deadline to extend the Black Sea Grain initiative.

Corn futures closed mostly 7¢ to 13¢ higher.

Soybean futures closed mostly 4¢ to 9¢ higher.

KC HRW Wheat closed mostly 22¢ to 23¢ higher.

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Major U.S. financial indices closed higher to sideways Friday with follow-through support from recent inflation news, as well as a strong start to quarterly corporate earnings reports.

The Dow Jones Industrial Average closed 113 points higher. The S&P 500 closed 4 points lower. The NASDAQ was down 24 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.28 to $1.47 lower through the front six contracts.

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Forecast cattle feeding returns continue to be extremely positive, according to the most recent Historical and Projected Kansas Feedlot Net Returns from Kansas State University.

Net returns for steers in Kansas (July-December) range from a low of $158.96 per head in December to a high of $261.37 in November. Net returns in July were projected to be $172.78. Over the same period, estimated feedlot cost of gain ranges from $139.65/cwt. in July to $110.60 in December.

Keep mind the returns reflect no price risk management.

Returns for heifers follow a similar pattern, ranging from a low of $68.66 per head in December to a high of $203.74 in October. July returns were estimated to be $156.98. During the same period, estimated feedlot cost of gain ranges from $153.59/cwt. in July to $118.45 in December.

Traders seemed to reconsider their initial reaction to Wednesday’s WASDE, fueling gains in Corn and Soybeans. The looming deadline to extend the Black Sea Grain initiative may have added support.

Corn futures closed mostly 12¢ to 16¢ higher.

Soybean futures closed mostly 29¢ to 43¢ higher.

KC HRW Wheat closed 2¢ to 5¢ higher.

The bounce higher in Corn futures weighed on Cattle futures Thursday, especially Feeder Cattle.

Feeder Cattle futures closed an average of $2.36 lower (57¢ to $1.42 lower).

Live Cattle futures closed an average of 32¢ lower, except for unchanged and 2¢ higher in two contracts.

Negotiated cash fed cattle trade was mostly inactive on light demand in all regions through Thursday afternoon, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $4.07 lower Thursday afternoon at 306.91/cwt. Select was 92¢ lower at $280.18/cwt.

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Major U.S. financial indices closed higher Thursday with another favorable inflation reading.

The Producer Price Index for final demand increased 0.1% percent in June, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. Final demand prices declined 0.4% in May and edged up 0.1% in April. On an unadjusted basis, the index for final

demand advanced 0.1% for the 12 months ended in June.

The Dow Jones Industrial Average closed 47 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 219 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.18 to $1.22 higher through the front six contracts.

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USDA’s Foreign Agricultural Service (FAS) increased expected global beef production in the latest quarterly Livestock and Poultry: World Markets and Trade.  Compared to the April report, FAS increased worldwide production to 59.6 million tons, about 1% more.

“Drought has induced more herd liquidation in Argentina, raising its production 6% from the April forecast,” FAS analysts explain. “Similarly, larger feedlot placements and higher cow slaughter are expected to boost U.S. production by 1% from April. New Zealand production is raised 3% as male dairy calves are now marketed for beef. EU production is cut 1% on lower slaughter and lighter weights due to high input costs.

On a related note, net U.S. beef export sales were 42% less than the previous week and down 28% from the prior four-week average, according to USDA’s weekly U.S. Export Sales report for the week ending July 6.

Increases were primarily for Japan, Taiwan, China, South Korea and Mexico.

Although USDA’s Economic Research Service (ERS) surprised some by making yield adjustments in the latest World Agricultural Supply and Demand Estimates — those usually come later in the growing season — Corn futures fell with higher estimated ending stocks.

Corn futures closed 12¢ to 22¢ lower through Sep ‘24 and then mostly 7¢ to 9¢ lower.

Soybean futures closed mostly 25¢ to 32¢ lower.

KC HRW Wheat closed mostly 7¢ to 16¢ lower.

Even so, Cattle futures closed lower on the day following strong action earlier; perhaps driven by profit taking.

Feeder Cattle futures closed an average of $1.20 lower (57¢ to $1.42 lower).

Live Cattle futures closed an average of $1.48 lower (62¢ to $1.95 lower).

Negotiated cash fed cattle trade was inactive with very light demand in all regions through Wednesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $178/cwt. in the Southern Plains, $183.00-$186.50 in Nebraska and $182-$184 in the western Corn Belt. Dressed prices were $290.

Choice boxed beef cutout value was $1.14 lower Wednesday afternoon at $310.98/cwt. Select was 86¢ lower at $281.10/cwt.

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Major U.S. financial indices closed higher again Wednesday with another signal of slowing inflation.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in June on a seasonally adjusted basis, according to the he U.S. Bureau of Labor Statistics; it increased 0.1% in May.

The Dow Jones Industrial Average closed 86 points higher. The S&P 500 closed 32 points higher. The NASDAQ was up 158 points.

West Texas Intermediate Crude Oil futures (CME) closed 75¢ to 92¢ higher through the front six contracts.

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USDA’s Economic Research Service projected the expected third-quarter fed steer price (five-area direct) $5 higher than the previous month to $178/cwt., and the fourth-quarter price $9 higher to $183, in the July World Agricultural Supply and Demand Estimates. The forecast annual price increased $3.60 to $175.30. Next year’s annual price was projected $4 higher at $184.

Price projections increased despite a bump in expected beef production due to higher expected steer, heifer, cow, and bull slaughter.

Specifically, forecast beef production for this year increased 75 million pounds from the previous estimate to 27.16 billion pounds. That would be 1.13 billion pounds less (-4%) than last year. Next year’s beef production was forecast to be a staggering 2.46 billion pounds less (-9.1%) that this year’s projected total at 24.7 billion pounds.

Cattle futures continued to churn higher Tuesday.

Feeder Cattle futures closed an average of 97¢ higher. Live Cattle futures closed an average of 94¢ higher (40¢ to $1.77 higher).

Corn and Soybean futures closed higher on likely positioning ahead of Wednesday’s World Agricultural Supply and Demand Estimates.

Corn futures closed 1¢ to 3¢ higher.

Soybean futures closed mostly 10¢ to 12¢ higher.

KC HRW Wheat closed mostly 6¢ 8¢ higher.

Negotiated cash fed cattle trade was inactive with very light demand in all regions through Tuesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $178/cwt. in the Southern Plains, $183.00-$186.50 in Nebraska and $182-$184 in the western Corn Belt. Dressed prices were $290.

Choice boxed beef cutout value was $1.67 lower Tuesday afternoon at $312.12/cwt. Select was $2.09 lower at $280.24/cwt.

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Major U.S. financial indices closed higher again Tuesday with investors apparently expecting to see more data this week suggesting cooling inflation. 

The Dow Jones Industrial Average closed 317 points higher. The S&P 500 closed 29 points higher. The NASDAQ was up 75 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.65 to $1.84 higher through the front six contracts.

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Nationwide, pasture and range conditions improved some last week, according to Crop Progress report from USDA’s National Agricultural Statistics Service.

For the week ending July 9, 47% of pasture and range was rated as Good (37%) or Excellent (10%), which was 2% more than the previous week and 19% more than a year earlier. 23% was rated as Poor (15%) or Very Poor (8%), which was 2% less than a week earlier and 23% less than a year earlier. States with more than 40% of pasture and range rated as Poor or Very Poor include: Arizona (54%), Michigan (53%), Missouri (71%) and Texas (44%).

Corn and soybean condition also improved a bit.

22% of corn was silking, which was 8% more than the same time last year and 1% more than the five-year average. 55% of corn was rated, Good (45%) or Excellent (10%) condition, compared to 51% the previous week and 67% the previous year. 14% was rated as Poor (10%) or Very Poor (4%), which was 1% less than previous week but 4% more than a year earlier.

39% of soybeans were blooming, which was 9% more than a year earlier and 4% more than average. 51% of soybeans were rated in Good (44%) or Excellent (7%) condition, which was 1% more than the previous week but 11% less than the same week last year. 15% of soybeans were in Poor (11%) or Very Poor (4%) condition, the same as the previous week and 6% more than the previous year.

46% of winter wheat was harvested, which was 16% less than last year and 13% less than the average. 40% was rated in Good (33%) or Excellent (7%) condition, which was the same as a week earlier and 9% more than a year earlier. 28% was rated Poor (17%) or Very Poor (11%), which was 1% less than the previous week and 5% less than a year earlier. 

Stellar cash demand for calves and feeder cattle, along with steady to stronger cash fed cattle prices last week helped Cattle futures extend gains Monday.

Feeder Cattle futures closed an average of 65¢ higher (10¢ higher at the back to $1.00 higher).

Live Cattle futures closed an average of 40¢ higher.

Negotiated cash fed cattle trade ranged from mostly inactive with very light demand to a standstill through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

Last week, live prices were steady to $1 lower in the Southern Plains at $178/cwt., $1.00 to $1.50 higher in Nebraska at $183.00-$186.50 and steady to $2 higher in the western Corn Belt at $182-$184. Dressed prices were steady at $290.

The five-area direct weighted average fed steer price last week was $182.06 on a live basis, up 73¢ from the previous week. The average fed steer price in the beef was 65¢ higher at 289.99.

Choice boxed beef cutout value was $3.11 lower Monday afternoon at $313.79/cwt. Select was $3.30 lower at $282.33/cwt.

Corn and Soybean futures closed higher on likely profit taking and positioning ahead of Wednesday’s World Agricultural Supply and Demand Estimates.

Corn futures closed mostly 4¢ to 5¢ higher.

Soybean futures closed 17¢ to 27¢ higher through Aug ’24 and then mostly 12¢ to 15¢ higher.

KC HRW Wheat closed mostly 3¢ to 7¢ lower.

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Major U.S. financial indices closed higher Monday as investors await further inflation readings this week, as well as the beginning of quarterly stock earnings reports.

The Dow Jones Industrial Average closed 209 points higher. The S&P 500 closed 10 points higher. The NASDAQ was up 24 points.

West Texas Intermediate Crude Oil futures (CME) closed 50¢ to 87¢ lower through the front six contracts.

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The U.S. beef industry trend toward tightening cattle supplies, decreased beef production and sharply higher prices are expected to impact international trade of U.S. cattle and beef, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.

“Reduced beef supplies and higher prices are projected to lead to reduced beef exports and increased beef imports,” Peel explains in his weekly market comments. “The strength of the U.S. dollar and the impacts of exchange rates may further exaggerate or mute these underlying market forces. The relatively strong dollar in recent months has tended to dampen beef exports and support increased imports. Unique market factors in specific countries will also impact trade flows in particular markets. The most recent trade data confirms that the expected impacts are indeed developing.”

As noted in last Friday’s Cattle Current, U.S. beef exports in May were 14% less year over year for volume and down 19% for value. For January through May, volume was 10% less than the same period last year and value was down 21%.

On the other side of the equation, Peel says total beef imports to the U.S. were up 5.7% year over year in May. He adds that imports for the first five months of the year are 0.6% less than the same time last year.

“Beef imports appear to be reverting to more traditional import patterns with May imports of beef from Australia up 39.1% and imports from New Zealand up 23.2 % for the month,” Peel says. By volume, Peel explains these are the top five importers to the U.S. in this order: Canada, Mexico, Brazil, Australia and New Zealand.

“Beef imports will continue to be supported by higher domestic beef prices and the reduction in U.S. processing beef supplies due to reduced cow slaughter,” Peel says.

Lower Corn futures and producer leverage demonstrated by the week’s cash fed cattle trade helped push Cattle futures higher on Friday.

Feeder Cattle futures closed an average of $2.58 higher ($1.80 at the back to $3.27 higher toward the front).

Live Cattle futures closed an average of $1.13 higher (42¢ higher near the back to $2.42 higher at the front).

Negotiated cash fed cattle trade ranged from slow with light to moderate demand in the North, to limited on light demand in the South through Friday afternoon, according to the Agricultural Marketing Service.

For the week, live prices were steady to $1 lower in the Southern Plains at $178/cwt., steady to $1 higher in Nebraska at $183-$185 and steady to $3 higher in the western Corn Belt at $183-$184. Dressed prices were steady at $290.

Choice boxed beef cutout value Friday afternoon was $2.97 lower at $316.90/cwt. Select was $4.34 lower at $285.63/cwt.

Estimated total cattle slaughter for the holiday-shortened week of 539,000 head was 108,000 head fewer than the previous week and 49,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 16.8 million head was 3.6% less year over year. Year-to-date estimated beef production of 13.8 billion pounds was 676.9. million pounds less (-4.7%).

Corn and Soybean futures closed lower on a wetter weekend outlook and perhaps some positioning ahead of next week’s World Agricultural Supply and Demand Estimates, which will be USDA’s first opportunity to make adjustments to forecast yields. 

Corn futures closed mostly 6¢ to 12¢ lower.

Soybean futures closed mostly 16¢ to 21¢ lower.

KC HRW Wheat closed 21¢ to 25¢ lower.

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Major U.S. financial indices closed lower again Friday on lingering rate hike fears, despite a weaker jobs report than expected.

Total non-farm payroll employment increased by 209,000 in June, according to the U.S. Bureau of Labor Statistics. The unemployment rate was little changed at 3.6%. In June, average hourly earnings for all employees on private non-farm payrolls rose by 12¢ to $33.58.

The Dow Jones Industrial Average closed 187 points lower. The S&P 500 closed 12 points lower. The NASDAQ was down 18 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.57 to $2.06 higher through the front six contracts.

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U.S. beef exports improved month to month in May, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). However, exports remain less than last year’s record totals.

Beef exports totaled 116,159 metric tons (mt) in May, down 14% year over year but up 4% from the previous month. Export value was $874.7 million, down 19% year over year but 2% above April. May exports strengthened to Mexico, Taiwan and South Africa. Export value to Canada was the highest in nearly eight years. Beef variety meat exports were the largest in 12 months at just under 27,000 mt.

“U.S. beef exports face considerable headwinds in 2023, on both the supply and demand side, especially when compared to last year’s massive totals,” says Dan Halstrom, USMEF president and CEO. “To address tighter beef supplies, USMEF has heightened efforts to showcase underutilized cuts, even in our well-established markets. It’s also encouraging to see beef variety meat exports maintain a strong pace, as this is essential for maximizing carcass value.”

Beef export value equated to $399.71 per head of fed slaughter in May, down 21% from a year ago. The January-May average was $391.66, down 19%.