Negotiated cash fed cattle trade continued on Friday, with too few transactions to trend in Nebraska and the western Corn Belt, but there was a sense that prices could maintain or build on earlier-week strength. Prices in the Southern Plains were $2-$4 higher on Thursday at mostly $121/cwt. in the Texas Panhandle and at $122 in Kansas.
That, and a bounce in support late in the day, helped Cattle futures regain some of the ground lost in the previous session.
Except for $1.55 higher in spot Apr and 22¢ higher in the back contract, Live Cattle futures closed an average of 61¢ higher.
Other than 65¢ lower in the back contract, Feeder Cattle futures closed an average of 65¢ higher except for 7¢ higher in spot Apr.
Choice boxed beef cutout value was 64¢ higher Friday afternoon at $211.98/cwt. Select was $1.65 higher at $200.13.
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Major U.S. financial indices closed lower on Friday, pressured by Apple (a bearish forecast for quarterly iPhone) sales and the rising 10-year Treasury Yield.
The Dow Jones Industrial Average closed 201 points lower. The S&P 500 closed 22 points lower. The NASDAQ closed 91 points lower.
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At worst, logic suggests Friday’s Cattle on Feed report should be viewed as neutral by the trade. Keep in mind the data accounts for feedlots with a one-time capacity of 10,000 head or more.
Placements in March of 1.92 million head were 9.26% less (196,000 head fewer) than last year. Estimates ahead of the report expected a decline in placements of 9-12% less. In terms of weight composition, 31.24% were placed on feeds at weights less than 699 lbs.; 55.2% weighed 700-899 lbs.; 13.53% weighed more than 900 lbs.
Marketings in March of 1.84 million head were 3.87% less (74,000 head fewer) than last year. Ahead of the report, analysts expected a decline of 4-5%.
Total cattle on feed of 11.73 million head, were 7.42% more (810,000 head more) than last year. The average expectation of analysts ahead of the report was for an increase of 7.1-7.6%. It’s the second-highest total for Apr. 1 since the series began in 1996.
The on-feed mix Apr. 1 was 64.24% steers and 35.76% heifers, with heifers representing 2.07% more of the total than last year.