Cattle futures extended gains in the holiday-shortened trading session on Friday, supported by stronger cash fed cattle prices at the end of the week and more confidence in the ability of other Nebraska packers to pick up the slack from the plant closure in Lexington (see below). Apparently, some traders also were heartened by the U.S. Agriculture Secretary’s comments earlier in the week suggesting the southern border will reopen on a staggered basis to Mexican cattle imports when it does reopen.
Live Cattle futures closed an average of $5.15 higher. Feeder Cattle futures closed an average of $8.59 higher.
Negotiated cash fed cattle trade was moderate on moderate to good demand in the Texas Panhandle through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices were $220/cwt., which was $5 higher than earlier in the week but $4 lower than a week earlier.
Trade in Kansas was moderate on good demand. FOB live prices were mostly $2-$4 lower at mainly $220.
In the western Corn Belt, trade was limited on moderate demand. Although too few to trend, there were some FOB live sales at $215. For the week, FOB live prices were $7-$8 lower at $208-$210. Dressed delivered prices were $12-$17 lower at $328-$330.
Trade in Nebraska was inactive on light to moderate demand. For the week, FOB live prices were mostly $8 lower at mainly $210. Dressed delivered prices were $10-$15 lower at $330.
Choice boxed beef cutout value was $1.46 lower Friday afternoon at $366.82/cwt. Select was $4.46 lower at $351.05.
Estimated total cattle slaughter last week of 501,000 head was 84,000 head fewer than the previous week and 32,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 26.7 million head was 2 million head fewer (-7.1%) than the same time last year. Year-to-date estimated beef production of 23.3 billion pounds was 1.1 billion pounds less (-4.4%).
Corn and Soybean futures continued higher Friday, supported by positive demand, including Chinese soybean purchases.
Corn futures closed 2¢ to 3¢ higher. Soybean futures closed 4¢ to 8¢ higher through May ‘27. KC HRW Wheat futures closed mostly fractionally lower to 2¢ lower.
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Major U.S. financial indices closed higher Friday, buoyed by tech stocks and growing optimism that the Fed will cut interest rates this month.
The Dow Jones Industrial Average closed 289 points higher. The S&P 500 closed 36 points higher. The NASDAQ was up 150 points.
West Texas Intermediate Crude Oil futures (CME) closed 10¢ to 24¢ lower through the front six contracts.
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Although disrupted by the holiday, fundamental footing appeared to resume in Cattle futures last week.
Live Cattle futures closed an average $4.22 higher week to week on Friday. Feeder Cattle futures closed an average of $10.92 higher.
That was after the mostly limit-down session to start the week as traders reacted to Tyson’s reduced packing capacity. Various reports toward the end of the week suggested recently built packing capacity can absorb the losses, besides the fact that cattle numbers continue to decline.
Although negotiated cash fed cattle prices continued lower last week, they showed signs of strengthening toward the end of the week. For perspective, FOB live prices declined $16.66/cwt. from the week ending Oct. 13 to the week ending Nov. 23 at $217.41. Dressed delivered fed steer prices were down $19.16 during the same period at $343.36.
Wholesale beef prices continued to languish, with Choice boxed beef cutout value $4.66 lower week to week on Friday and select down $5.93. However, seasonal strength should begin appearing as the calendar turns to December.
Cash calf and feeder cattle prices continued their spiral last week, pressured by the massive volatility and market uncertainty mostly wrought by politics.
The CME Feeder Cattle Index was $19.20 lower week to week on Thursday at $321.96. That was $54.19 lower than the recent high on Oct. 16.