Negotiated cash fed prices were mainly $2-$3 lower last week on a live basis at mostly $110-$111/cwt. Dressed prices were generally $3-$4 lower at $174-$176.
Cattle futures steadied Friday, helped along by light trade volume and sharply lower cash grain prices, tied to the monthly World Agricultural Supply and Demand Estimates.
Live Cattle futures closed narrowly mixed (12¢ lower to 20¢ higher).
Except for unchanged in Jan, Feeder Cattle futures closed an average of 27¢ higher.
Boxed beef cutout values were firm for Choice and weak for Select on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 55¢ higher Friday afternoon at $206.61/cwt. Select was 32¢ lower at $197.77.
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Major U.S. financial indices closed sharply lower Friday, with global markets rattled by the blooming financial crisis in Turkey.
The Dow Jones Industrial average closed 196 points lower. The S&P 500 closed 20 points lower. The NASDAQ was down 52 points.
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Beef production for this year was reduced 56 million lbs. from the previous month’s forecast to 27.09 billion lbs. in August World Agricultural Supply and Demand Estimates (ERS) released Friday.
“The decline in beef production largely reflects a slower pace of marketings in the third quarter,” say analysts with USDA’s Economic Research Service (ERS). “Cow slaughter is raised, but recent carcass weight data and a larger proportion of cows in the slaughter mix led to a reduction in expected carcass weights during the second half of the year.”
Fed steer prices (5-area Direct) were unchanged at the midpoint, though. The third-quarter price is forecast at $107-$111/cwt. Estimates for the fourth quarter are $109-$115; $116-$126 for the first quarter next year.
Total red meat and poultry production for this year was raised 27 million lbs. to 103.12 billion lbs. based on increased broiler production.
Corn prices should continue on the lower end of the scale.
“Corn production is forecast at 14.6 billion bu., down less than 1% from last year. Based on conditions as of August 1, yields are expected to average 178.4 bu./acre, up 1.8 bu. from 2017,” said analysts with the National Agricultural Statistics Service (NASS), in the monthly Crop Production report. “If realized, this will be the highest yield on record for the United States. Area harvested for grain is forecast at 81.8 million acres, unchanged from the June forecast, but down 1% from 2017.”
The season-average corn price received by producers is down 20¢ at the midpoint at a range of $3.10 to $4.10/bu.