Negotiated cash fed cattle sales were at $109.00-$110.50/cwt. in Nebraska through Friday afternoon. That was steady to $2 less than previous week. Dressed trade was at mostly $173, which was $2 less than the prior week. Elsewhere, trade remained undeveloped for the week, based on USDA reports.
Despite that, Cattle futures gained ground, supported by extended gains in Lean Hog futures and strengthening wholesale beef values.
Live Cattle futures closed an average of 97¢ higher (47¢ higher at the back of the board to $1.60 higher in near Oct).
Feeder Cattle futures closed an average of $1.13 higher (67¢ higher to $1.70 higher).
Boxed beef cutout values were higher on Choice and weaker on Select with moderate to fairly good demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $2.28 higher Friday afternoon at $211.38/cwt. Select was 54¢ lower at $200.92.
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Major U.S. financial indices extended gains from the previous session, buoyed by reports that President Trump and Chinese leader Xi Jinping are working on plans to discuss trade issues.
The Dow Jones Industrial average closed 110 points higher. The S&P 500 closed 9 points higher. The NASDAQ was up 9 points.
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“In the recent past, price movements in the cattle markets and most agricultural commodity markets, for that matter, have been attributed to weather events, trade issues or some other newsworthy disgruntlement,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “However, the softening that is taking place in today’s market seems to have more to do with the seasonal price patterns established through supply and demand factors.”
Although prices for feeders and fed cattle continue higher than many expected, Griffith points out feeder cattle prices typically peak in August and then soften heading into fall.
“Softer prices on calves and feeder cattle this week may be a sign that the market is beginning its seasonal decline, which is fully evident in the slaughter cow market,” Griffith says. “Calves and slaughter cows tend to take a larger hit in the fall than do feeder cattle. There are sure to be producers who try to time the market during the fall months, which may result in $10 to $15 more per head on a certain week, but the strategy of trying to time the market when prices are heading lower does little to improve profitability.”