Cattle futures were narrowly mixed Friday as traders waited the monthly Cattle on Feed report, which will likely be viewed as neutral to slightly bearish (see below).
Live Cattle futures closed an average of 29¢ lower except for 2¢ higher in spot Aug. Feeder Cattle futures closed mixed, from an average of 49¢ higher in the front three contracts to an average of 62¢ lower.
Week to week on Friday, Live Cattle futures were an average of $1.69 lower (22¢ to $2.92 lower). Feeder Cattle futures were an average of $2.17 lower week to week (20¢ to $3.37 lower).
Negotiated cash fed cattle trade was mostly inactive on light demand through Friday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 lower in the Texas Panhandle at $183/cwt. and generally steady to $3 lower in the western Corn Belt at $187.50. Dressed delivered prices were $3-$6 lower in Nebraska at mostly $295 and $3 lower in the western Corn belt at $293-$295 in a light test.
The previous week, FOB live prices were $185 in Kansas and $190 in Nebraska.
Choice boxed beef cutout value was $1.35 higher Friday afternoon, at $317.34/cwt. Select was $1.57 lower at $300.46.
Estimated total cattle slaughter last week of 608,000 head was 6,000 head more than the previous week, but 18,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 20.3 million head was 893,000 head fewer (-4.2%) than the same time last year. Estimated year-to-date beef production of 17.1 billion pounds was 226.2 million pounds less (-1.3%).
Grain futures continued to leak lower Friday, while Soybean futures gained on increasing export demand.
Soybean futures were 8¢ to 11¢ higher. Corn futures closed fractionally lower to 3¢ lower through Sep ’25 and then unchanged to 1¢ higher. Kansas City Wheat futures closed 6¢ to 10¢ lower.
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Major U.S. financial indices closed higher Friday, buoyed by comments from Federal Reserve Chair, Jerome Powell, pointing to interest rate cuts.
“The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” according to Powell, who was speaking at the closely watched economic symposium in Jackson Hole, Wyo.
“Four and a half years after COVID-19’s arrival, the worst of the pandemic-related economic distortions are fading,” Powell explained. “Inflation has declined significantly. The labor market is no longer overheated, and conditions are now less tight than those that prevailed before the pandemic. Supply constraints have normalized. And the balance of the risks to our two mandates has changed.”
The Dow Jones Industrial Average closed 462 points higher. The S&P 500 closed 63 points higher. The NASDAQ was up 258 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.45 to $1.82 higher through the front six contracts.
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Markets will likely view Friday’s Monthly Cattle on Feed report as neutral to slightly bearish with more placements than expected. Feedlots with 1,000 head or more capacity placed 1.7 million head in July, which was 94,000 head more (+5.8%) than the previous year, about 2% more than the average of analyst expectations ahead of the report.
In terms of placement weights, 38% went on feed weighing less than 699 lbs., 46% weighing 700-899 lbs. and 16% weighing 900 lbs. or more.
Marketings in August of 1.9 million head were 133,000 head more (+7.7%) year over year, but 0.5% less than expectations.
Cattle on Feed Aug. 1 of 11.1 million head were 31,000 head more (+0.3%) more than the previous year, which was in line with expectations.