Cattle futures closed higher Friday and for the week, helped by holding recent gains in cash fed cattle prices and higher wholesale beef values on the day. The monthly Cattle on Feed report (see below) should help optimism.
Live Cattle futures closed an average of $1.83 higher. Feeder Cattle futures closed an average of $4.39 higher.
Week to week on Friday, Live Cattle futures closed an average $1.03 higher and Feeder Cattle futures closed an average of $4.20 higher.
Negotiated cash fed cattle trade ranged from light on moderate demand in the western Corn Belt to limited on moderate demand in Nebraska through Friday afternoon, according to the Agricultural Marketing Service. For the week, FOB live prices were unevenly steady in both regions at $228/cwt. Dressed delivered prices were $356-$358, which was $3-$6 higher in the western Corn Belt and mainly $3 higher in Nebraska.
Trade was inactive on moderate demand in Kansas. FOB live prices there last week were $230/cwt.
Choice boxed beef cutout value was $4.35 higher Friday afternoon at $361.63/cwt. Select was $2.05 higher at $346.02. Week to week on Friday, Choice was $4.19 higher and Select was $1.80 higher.
Estimated total cattle slaughter last week of 587,000 head was 9,000 head fewer than the previous week and 29,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 28.5 million head was 2.1 million head fewer (-6.9%) than the same time last year. Estimated year-to-date beef production of 24.9 billion pounds was 1.1 billion pounds less (-4.1%) than the same period a year ago.
Grain and soybean futures closed lower Friday.
Corn futures closed fractionally lower. KC HRW Wheat futures closed fractionally lower to 1¢ lower. Soybean futures closed mostly 3¢ lower through May ‘28.
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Major U.S. financial indices closed higher Friday with follow-through support from the tamer than expected Consumer Price Index.
The Dow Jones Industrial Average was up 183 points. The S&P 500 closed 59 points higher, and the NASDAQ closed 301 points higher.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) closed 40¢ to 52¢ higher through the front six contracts.
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Markets will likely view Friday’s monthly Cattle on Feed report as bullish with the fewest November placements since the data series began in 1996.
Feedlots with 1,000 head or more capacity placed 1.6 million head in November, which was 201,000 head fewer (-11.2%) than the same month last year. That was 3.6% less than average analyst expectations ahead of the report.
In terms of weights for net placements, 52% went on feed weighing 699 lbs. or less, 35% weighing 700-899 lbs. and 13% weighing 900 lbs. or more.
Marketings in November of 1.5 million head were 204,000 head fewer (-11.8%) year over year, which was in line with expectations, but the second fewest for the month going back to 1996.
Cattle on feed Dec. 1 of 11.7 million head were 255,000 head fewer (-2.1%) than the same month last year, which was slightly less than expected. Effects of the southern border closure to Mexican feeder cattle imports, due to New World screwworm, grows more glaring with each passing month. Texas feedlot inventory Dec. 1 of 2.6 million head was 9% less year over year and November placements of 285,000 head were 17% less.