Cattle futures eased mostly lower Friday, awaiting full development of the week’s cash fed cattle trade.
Live Cattle futures closed an average of 21¢ lower, except for 57¢ higher in spot Feb.
Feeder Cattle futures closed an average of 33¢ higher, except for 27¢ lower in three contracts.
Negotiated cash fed cattle trade was moderate on moderate to good demand in Nebraska through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices were mostly $5 higher at mainly $245/cwt. Dressed delivered prices were $2-$4 higher at $380-$382.
Trade was limited on moderate demand in the western Corn Belt. Although too few to trend, there were some FOB live trades at $244 and a few dressed trades at $380. Prices there the previous week were $240-$242 and $378, respectively.
Trade was inactive on light demand in the Southern Plains. FOB live prices the previous week were mostly $245.
Choice boxed beef cutout value was 37¢ lower Friday afternoon at $364.47/cwt. Select was 39¢ higher at $363.42. Week to week on Friday, Choice boxed beef was $4.86 lower and Select was $1.11 lower.
Estimated total cattle slaughter last week of 541,000 head was 5,000 head more than the previous week but 21,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 3.4 million head was 404,000 head fewer (-10.6%) than the same time last year. Total estimated year-to-date beef production of 3.1 billion pounds was 285.1 million pounds less (-8.6%).
Book squaring and profit taking ahead of the market’s three-day weekend appeared to be the order of business for Grain and Soybean futures on Friday.
Corn futures closed mostly fractionally higher. KC HRW Wheat futures closed 10¢ to 12¢ lower. Soybean futures closed mostly 2¢ to 3¢ lower.
******************************
Major U.S. financial indices were little changed Friday, retaining most of the previous session’s losses but helped by a softer inflation reading than expected.
The Consumer Price Index for All Urban Consumers increased 0.2% in January, on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. The all items index increased 2.4% over the last 12 months before seasonal adjustment.
The index for all items less food and energy rose 0.3% in January. Indexes that increased over the month include airline fares, personal care, recreation, medical care and communication. The indexes for used cars and trucks, household furnishings and operations, and motor vehicle insurance were among the major indexes that decreased in January.
The Dow Jones Industrial Average closed 48 points higher. The S&P 500 closed 3 points higher. The NASDAQ was down 50 points.
West Texas Intermediate Crude Oil futures (CME) closed 2¢ to 3¢ through the front six contracts.
******************************
The United States signed a reciprocal trade agreement with Taiwan last week, which removes non-tariff trade barriers to U.S. red meat exported to Taiwan. U.S. beef gains duty-free access, according to the National Cattlemen’s Beef Association (NCBA).
“Strong, science-based trade agreements are essential to adding value for U.S. cattle producers, and Taiwan has emerged as one of the strongest international markets for U.S. beef,” says NCBA President Gene Copenhaver. “Duty-free access improves competitiveness and provides long-term certainty for producers who depend on export markets to maximize the value of every animal. Foreign markets play a critical role in producer profitability with beef exports accounting for more than $415 per fed cattle processed in 2024.”
More specifically, Dan Halstrom, president and CEO of the U.S. Meat Export Federation explains, “Taiwan is the fifth largest market for U.S. beef, with exports valued at about $650 million, and the U.S. is the largest supplier of beef to Taiwan. But there is still potential for further growth with the increased access for all U.S. beef products … The elimination of tariffs on U.S. beef will definitely improve our competitiveness.”