Cattle futures closed higher Friday, following stronger equity markets.
Live Cattle futures were an average of $2.15 higher. Feeder Cattle futures were an average of $3.47 higher. Week to week on Friday, Live Cattle futures closed mixed, from an average of 80¢ lower in the front three contracts to an average of $2.45 higher. Feeder Cattle futures were an average of $3.57 higher during the same period.
Negotiated cash fed cattle trade was limited on light demand in all regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2-$5 lower at $208/cwt. in Nebraska and the western Corn Belt. Dressed delivered prices were $7-$8 lower at $327-$328.
The previous week, live FOB prices were $208 in the Southern Plains.
Wholesale beef prices softened. Choice boxed beef cutout value was 7¢ lower Friday afternoon at $334.22/cwt. Select was $1 lower at $313.96.
Estimated total cattle slaughter last week of 564,000 head was 27,000 head fewer than the previous week and 34,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 8.4 million head was 483,000 head fewer (-5.4%) than the same week a year earlier. Estimated year-to-date beef production of 7.4 billion pounds was 126.4 million pounds less (-1.7%).
Grain and Soybean futures were higher Friday.
Corn futures were mostly 8¢ to 9¢ higher, supported by the week’s U.S. export sales, lower U.S. dollar and added weather premium. Week to week on Friday, they were an average of 20’3¢ higher through the front six contracts.
Kansas City Wheat futures were 10¢ higher. Soybean futures were mostly 15¢ to 20¢ higher.
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Major U.S. financial indices closed higher Friday, despite declining consumer confidence. The closely watched University of Michigan Index of Consumer Sentiment sank 11% month to month in April and was down 34% year over year. Consumer inflation expectations for the next year jumped 1.7% month to month to 6.7%, the highest reading since 1981.
The Dow Jones Industrial Average closed 619 points higher. The S&P 500 closed 95 points higher. The NASDAQ was up 337 points.
West Texas Intermediate Crude Oil futures (CME) were 82¢ to $1.43 higher through the front six contracts.
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Despite swirling volatility across equity market and many agricultural commodities over the last several weeks, analysts with the Livestock Marketing Information Center (LMIC) point out feedstuff prices remained relatively stable.
“Corn prices in Omaha have traded within a 10-cent per bushel range since late February with one week dipping outside of that range,” LMIC analysts explain in the latest Livestock Monitor. “Soybean meal prices stayed within a $10 per ton band in Central Illinois over the six-week period but then dipped below that in the first week of April. This is quite a contrast to crude oil prices that have moved to the lowest prices in over three years and stock market indices that touched their lowest values since late 2023.”
Citing the latest monthly projections from the USDA-World Agricultural Outlook Board (WAOB), global demand for U.S. corn remains optimistic.
“The corn export projection was raised to 2.55 billion bushels from the prior projection of 2.45 billion bushels,” LMIC analysts say. “This is the biggest U.S. corn export volume since the 2020-2021 crop year when exports totaled 2.747 billion bushels.”
The WAOB held expected corn prices for the current crop year (ending in August) unchanged at $4.35 per bushel. However, LMIC projected the average price at $4.60 per bushel, up 10¢ from the prior month.
LMIC analysts explain their price forecasts make slight adjustments based on variations in livestock and poultry assumptions. Plus, their forecast includes a projection for the 2025-26 corn crop year price.
Keeping in mind the significant increase in corn planting projected in the recent USDA Prospective Plantings report, LMIC analysts say, “The corn price forecast for the 2025-2026 crop year had been expected to hold up close to this year’s value in the $4.40-$4.60 range. The larger corn production coming from more planted acres, matched up against steady assumptions for export and domestic usage, lowers the average corn price forecast for 2025-2026 into the $4.00-$4.20 range.”