Cattle futures were narrowly mixed Friday with uncertainty about the Cattle on Feed report, which ultimately proved to be likely supportive (see below).
Live Cattle futures closed an average of 12¢ higher, except for unchanged to an average of 5¢ lower in three contracts. They were an average of $4.20 higher week to week on Friday.
Feeder Cattle futures closed an average of 57¢ lower. They were an average of $6.82 higher week to week on Friday.
Negotiated cash fed cattle trade was moderate on moderate demand in the Southern Plains and Nebraska through Friday afternoon, according to the Agricultural Marketing Service. Trade in the western Corn Belt was slow on light to moderate demand.
FOB live prices were steady in the Southern Plains at $182/cwt., mostly $1 lower in Nebraska at $183 and $1 lower in the western Corn Belt at $184. Dressed delivered prices were $1 lower at $292.
Choice boxed beef cutout value was 13¢ lower Friday afternoon at $295.67/cwt. Select was $1.56 higher at $290.83/cwt.
Last week, estimated total cattle slaughter of 620,000 head was 17,000 head more than the previous week but 5,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 9.5 million head was 486,000 head fewer (-4.7%). Estimated year-to-date beef production of 8 billion pounds was 233.9 million pounds less (-2.8%). For broader context, estimated total year-to-date red meat production is 1.3% less.
Turning to row crops, Grain and Soybean futures rallied Friday with likely short covering.
Corn futures closed mostly 4¢ to 6¢ higher, with added support from the Environmental Protection Agency’s emergency fuel waiver to allow E15 gasoline — gasoline blended with 15% ethanol — to be sold during the summer driving season.
KC HRW Wheat futures closed mostly 6¢ to 7¢ higher.
Soybean futures closed 11¢ to 16¢ higher through Jan ’25.
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Major U.S. financial indices closed mixed Friday with pressure from tech stocks and geo-political concerns about the Mideast conflict.
The Dow Jones Industrial Average closed 211 points higher. The S&P 500 closed 43 points lower. The NASDAQ was down 319 points.
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Markets will likely view Friday’s monthly Cattle on Feed report as neutral to supportive with fewer feedlot placements than expected.
For feedlots with 1,000 head or more capacity, March placements of 1.7 million head were 246,000 head fewer than the same time last year, which was 12.3% less and about 4% fewer than expectations ahead of the report.
In terms of placement weights, 34% went on feed weighing 699 lbs. or less, 53% weighing 700-899 lbs. and 13% weighing 900 lbs. or more.
Marketings in March of 1.7 million head were 271,000 head fewer (-13.7%) than last year. That was about 2% less than estimates ahead of the report.
Cattle on feed April 1 of 11.8 million head were 174,000 head more (+1.5%) than a year earlier, which was in line with expectations.
Heifers on feed April 1 0f 4.6 million head were 39% of the mix and 1% more than the same time last year.