Cattle futures sank lower Friday with pressure including the bounce higher in grain futures, more cases of Bovine Influenza A Virus in dairy cattle and struggling outside markets.
Live Cattle futures closed an average of $2.39 lower.
Feeder Cattle futures closed an average of $3.27 lower.
Week to week on Friday, Live Cattle futures closed an average of $1.39 and Feeder Cattle futures closed an average of $3.25 lower.
Negotiated cash fed cattle trade ranged from slow on light demand to moderate on moderate demand through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 lower in the Texas Panhandle at $182/cwt., $1-$2 lower in Kansas at $182, $3 lower in Nebraska at $184 and $2 lower in the western Corn Belt at $185.
Dressed delivered prices were $3-$4 lower in Nebraska at $293 and $4 lower in the western Corn Belt at $293.
Choice boxed beef cutout value was $2.20 higher Friday afternoon at $300.57/cwt. Select was 39¢ higher at $295.54/cwt.
Estimated total cattle slaughter last week of 603,000 head was 10,000 head fewer than the previous week and 8,000 head fewer than the same week a year earlier. Year-to-date estimated total cattle slaughter of 8.9 million head was 482,000 head fewer (-5.1%) year over year. Year-to-date estimated beef production of 7.5 billion pounds was 251.6 million pounds less (-3.3%).
Grain and Soybean futures rallied Friday as funds appeared to exit positions amid risk-off sentiment in equity markets.
Corn futures closed 5¢ to 6¢ higher through Jly ’25 and then mostly 2¢ to 3¢ higher.
KC HRW Wheat futures closed 5¢ to 8¢ higher through May ’25 and then mostly 3¢ higher.
Soybean futures closed 11¢ to 14¢ higher through Jan ’25 and then 6¢ to 9¢ higher.
******************************
Major U.S. financial indices closed sharply lower Friday with pressure from inflation concerns and wobbly corporate earnings.
The Dow Jones Industrial Average closed 475 points lower. The S&P 500 closed 75 points lower. The NASDAQ was down 267 points.
West Texas Intermediate Crude Oil futures (CME) closed 59¢ to 64¢ higher through the front six contracts.
******************************
Counter-seasonally heavier carcass weights are moderating less cattle slaughter, according to the Livestock Marketing Information Center (LMIC).
LMIC analysts note in the latest Livestock Monitor that dressed steer and heifer carcass weights have risen the past eight weeks.
“Normally fed cattle dressed weights fall, reliably, from January to June and then move up July to November. Some years the seasonal pattern is less pronounced than others, but rarely is the opposite trend seen in cattle dressed weights,” LMCI analysts explain. “At least some of the reason dressed weights are heavier is that marketings have been lower, and the number of cattle on feed over 150 days is higher. Daily marketings in March are estimated to be in the low 80,000s head per day, a small number given that cattle on feed is above a year ago. Cattle on feed more than 150 days reached 2.7 million head in February, resembling numbers seen during the pandemic and post-pandemic supply chain problems.”
Through the first quarter, LMIC analysts say cattle harvest was down an estimated 5%, but average cattle carcass weights were up 2%, meaning that beef production was down 3.5%.