Steady Corn futures prices, firmer cash fed cattle prices and the recent uptick in wholesale beef prices helped Cattle futures rise on Friday.
Feeder Cattle futures closed an average of 95¢ higher (45¢ to $1.17 higher).
Live Cattle futures closed an average of 69¢ higher.
Negotiated cash fed cattle trade was moderate on moderate demand in the Texas Panhandle through Friday afternoon, according to the Agricultural Marketing Service. FOB live trades were steady at $178-$179/cwt.
Trade in Kansas was slow on light to moderate demand with FOB live prices steady at $179.
Trade in Nebraska was limited on light demand with too few transactions to trend. For the week, live FOB prices were steady to $3 lower at $185. Dressed delivered prices were steady to $2 lower at $292-$295.
In the western Corn Belt, trade was slow on light demand with too few transactions to trend. For the week, FOB live prices were $1-$3 lower at $185. Dressed delivered prices the previous week were $290-$295.
Choice boxed beef cutout value was 27¢ higher Friday afternoon at $317.90/cwt. Select was 76¢ higher at $292.67/cwt. Week to week on Friday, Choice was $1.79 higher and Select was $4.31 higher.
Estimated total cattle slaughter last week of 626,000 head was 10,000 head more than the previous week but 52,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 21.2 million head was 928,000 head fewer (-4.2%) than the same period last year. Estimated year-to-date beef production of 17.3 billion pounds was 917.8 million pounds less (-5.0%) than the same time last year.
Turning to the grain complex, Corn futures closed mostly fractionally lower. KC HRW Wheat closed 1¢ to 2¢ higher. Soybean futures closed 10¢ to 16¢ higher through Aug ‘24 and then mostly 5¢ to 8¢ higher.
Major U.S. financial indices rebounded Friday with a more positive economic growth outlook from the Fed.
“So far this year, GDP (gross domestic product) growth has come in above expectations and above its longer-run trend, and recent readings on consumer spending have been especially robust,” according to Federal Reserve chair, Jerome Powell, in his presentation to an economics policy symposium on Friday. “In addition, after decelerating sharply over the past 18 months, the housing sector is showing signs of picking back up.”
The Dow Jones Industrial Average closed 247 points higher. The S&P 500 closed 29 points higher. The NASDAQ was up 126 points.
West Texas Intermediate Crude Oil futures (CME) closed 78¢ to 83¢ higher through the front six contracts.
Reduced beef cow numbers in tandem with remarkably steadfast consumer beef demand may compel dairy producers to leverage beef breed genetics in their reproduction programs and capture an additional revenue stream in the process, according to a new report from CoBank’s Knowledge Exchange.
“We expect the adoption of beef genetics in dairy breeding programs will accelerate as producers capitalize on the opportunity for improved margins, particularly given the reduction in beef calf availability,” says Brian Earnest, lead animal protein economist for CoBank. “And while the impact on the overall beef supply will be relatively small, an increase in beef and dairy crossbred calves entering the beef supply chain is something cattle feeders and packers will want to keep an eye on.”
The practice of leveraging beef genetics in dairy reproductive programs, commonly referred to as “beef on dairy” within the industry, has steadily increased in recent years. On average, day-old beef and dairy crossbred calves entering the beef supply chain sell for $100-$300 more than their 100% dairy-bred counterparts.
Increased adoption of beef on dairy crossbreeding will primarily benefit dairy producers, but other sectors of the beef supply chain stand to benefit as well, according to the CoBank report. Animal genetics companies that provide beef semen for artificial insemination of dairy cows can expect continued sales growth.
According to the National Association of Animal Breeders’ Semen Sales Report, U.S. beef semen sales from 2017 to 2022 increased at a rate nearly equal to the rate that U.S. dairy semen sales decreased. The data suggests rising beef semen sales are largely attributable to increased purchases by dairy operators.