Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, live prices were $2-$4 higher in the Texas Panhandle at $165-$167/cwt., $4 higher in Kansas at $167, $4-$7 higher in Nebraska at $168-$172 and $4-$6 higher in the western Corn Belt at $170. Dressed prices were $5-$7 higher at $270-$272.
Estimated total cattle slaughter last week of 651,000 head was 25,000 head more than the previous week and 12,000 more than the same week last year. Estimated year-to-date total cattle slaughter of 8.19 million head was 193,000 head fewer (-2.3%) than the same period last year. Estimated year-to-date beef production of 6.75 billion pounds was 282 million pounds less (-4.0%).
The week’s significantly higher cash fed cattle prices continued to push Cattle futures higher Friday.
Feeder Cattle futures closed an average of $1.03 higher.
Live Cattle futures closed an average of 66¢ higher (10¢ higher at the back to $1.12 higher toward the front).
Cattle futures received added support from wholesale beef prices. Choice boxed beef cutout value was $2.87 higher Friday afternoon at $282.07/cwt. Select was $2.26 higher at $270.72/cwt.
Corn futures closed mostly fractionally lower to 4¢ lower, except for 11¢ and 8¢ higher in the front two contracts. The Perspective Plantings report (see below) applied pressure.
KC HRW Wheat closed 2¢ to 6¢ higher through May ‘24, and then 4¢ to 6¢ lower.
Soybean futures closed 10¢ to 31¢ higher through Aug ‘24, and then mostly 2¢ to 3¢ higher, helped along by the Grain Stocks report (see below).
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Major U.S. financial indices closed higher Friday, buoyed by less increase than expected in the Personal Consumptions Expenditures index (PCE), closely watch by the Fed as an inflation gauge.
The PCE increased 0.3% in February, according to the U.S. Bureau of Economic Analysis. The trade expected an increase of 0.4%.
The Dow Jones Industrial Average closed 415 points higher. The S&P 500 closed 58 points higher. The NASDAQ was up 208 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.24 to $1.32 higher through the front six contracts.
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U.S. farmers intend to plant 4% more corn acres this year than last, according to the Perspective Plantings report issued Friday.
Corn planted area for all purposes in 2023 was estimated at 92.0 million acres, which would be 3.42 million acres more than last year. That was 1.1 million acres more than expectations ahead of the report.
It’s worth noting that 800,000 acres of the added year-over-year corn acres are in North Dakota, where winter looks to linger for a while.
Soybean planted area for 2023 was estimated at 87.5 million acres, up slightly from last year, but 740,000 acres fewer than average expectations ahead of the report.
All wheat planted area for 2023 was estimated at 49.9 million acres, up 9% from 2022 and about 1 million acres more than expectations ahead of the report. Projected 2023 winter wheat planted area was 13% more than last year at 37.5 million acres.
USDA estimated harvested acres of all hay this year to be 50.6 million acres, which would be 1.1 million acres (+2.2%) more than last year.
Stocks Tighten
Overall, corn and soybean stocks were snugger than expectations ahead of the report.
Corn stocks in all positions on March 1, 2023 totaled 7.40 billion bushels, down 5% percent from a year earlier, according to the Grain Stocks report. Of the total stocks, 4.11 billion bushels were stored on farms, which was 1% more year over year.
Soybeans stored in all positions on the same date totaled 1.69 billion bushels, down 13% from a year earlier. Soybean stocks stored on farms were estimated at 750 million bushels, down slightly from a year ago.
All wheat stored in all positions on March 1 totaled 946 million bushels, down 8% from a year ago. On-farm stocks were estimated at 227 million bushels, which was 30% more than a year earlier.