Cattle futures closed lower for a third consecutive session on Friday, but off session lows. Part of the early pressure was likely tied to some worries about the Secretary of Agriculture announcing a timetable for the U.S. border reopening during scheduled remarks in Texas, but she made no mention. Friday’s Cattle on Feed report (see below) could add more optimism when next week begins.
Live Cattle futures closed an average of 48¢ lower. Feeder Cattle futures closed an average of $2.13 lower.
Week to week on Friday, Live Cattle futures closed an average of $2.12 lower. Feeder Cattle futures closed an average of $6.31 lower.
Negotiated cash fed cattle trade was moderate on good demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were mainly $248/cwt., which was mostly $2 higher in the Texas Panhandle, unevenly steady in Kansas, steady to $1 lower in Nebraska and steady in the western Corn Belt. Dressed delivered prices were $388, which was steady in the western Corn Belt and steady to $1 lower in Nebraska.
Choice boxed beef cutout value was 51¢ lower Friday afternoon at $381.06/cwt. Select was $1.88 lower at $376.60. Week to week on Friday, Choice boxed beef cutout value was 16¢ higher and Select was $4.74 lower.
Estimated total cattle slaughter last week of 514,000 head was 2,000 head more than the previous week but 64,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 8.1 million head was 915,000 head fewer (-10.2%) the same time last year. Year-to-date estimated beef production of 7.3 billion pounds was 601.7 million pounds less (-7.7%).
Grain and Soybean futures were pressured early Friday by sharply lower Crude Oil prices related to the opening of the Strait of Hormuz. By the end of the session, though, futures were mixed.
Kansas City HRW Wheat futures closed mostly 3¢ to 6¢ lower with likely profit taking. Corn futures were mostly fractionally mixed through Jly ’27. Soybean futures were mostly 1¢ to 4¢ higher.
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Major U.S. financial indices closed sharply higher again Friday, supported by sharply lower Crude Oil prices and Iran declaring the opening of the Strait of Hormuz.
The Dow Jones Industrial Average closed 868 points higher. The S&P 500 closed 84 points higher. The NASDAQ was up 365 points.
West Texas Intermediate Crude Oil futures (CME) were $4.29 to $10.84 lower through the front six contracts.
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Markets will likely view Friday’s monthly Cattle on Feed report as neutral to bullish with slightly fewer placements than expected and slightly more marketings.
Feedlots with 1,000 head or more capacity placed 1.7 million head in March. That was 7.3% less year over year and 0.8% less than average analyst estimates ahead of the report.
In terms of placement weights, 34% went on feed weighing 600 pounds or less, 53% weighing 700-899 pounds, and 13% weighing 900 pounds or more.
Marketings in March of 1.6 million head were 95,000 head fewer than the same time last year, which was 5.5% less but 0.8% more than expectations. Marketings for the month were second fewest since the data series began in 1996.
Cattle on feed April 1 of 11.6 million head were 62,000 head fewer (-0.5%) than the previous year and slightly less than pre-report estimates.