Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. In the North, trade ranged from slow on moderate demand in the western Corn Belt to moderate on moderate demand in Nebraska.
For the week, FOB live prices were $203/cwt., which was $3 lower in the Southern Plains, $5 lower in Nebraska and $2-$5 lower in the western Corn Belt.
Dressed delivered prices were $7-$8 lower in Nebraska at $320-$321. The previous week, dressed delivered prices were $328 in the western Corn Belt.
Choice boxed beef cutout value was $2.70 lower Friday afternoon at $314.70/cwt. Select was $2.70 lower at $307.14. Week to week on Friday, Choice was $7.17 lower and Select was $5.76 lower.
Cattle futures closed lower Friday as wholesale beef values moved seasonally lower, cash fed cattle prices lost ground and funds likely exited more positions.
Live Cattle futures closed an average of $1.46 lower. Feeder Cattle futures closed an average of $1.24 lower.
Week to week on Friday, Live Cattle futures were an average of $1.92 lower through the front four contracts to an average of 47¢ higher. Feeder Cattle futures were an average of 1.72 higher.
Wheat led grain and Soybean futures higher Friday with likely short covering by funds.
Corn futures closed mostly 1¢ to 2¢ higher. Kansas City Wheat futures closed 20¢ to 23¢ higher through Mar ’26 and then 13¢ to 19¢ higher. Soybean futures closed 5¢ to 6¢ higher.
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Major U.S. financial indices closed narrowly mixed Friday.
The Dow Jones Industrial Average closed 165 points lower. The S&P 500 closed fractionally lower. The NASDAQ was up 81 points.
West Texas Intermediate Crude Oil futures on the CME closed 15¢ to 55¢ lower through the front six contracts.
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With the die cast for tighter cattle supplies over the next couple of years, Stephen Koontz, agricultural economist at Colorado State University says carcass weights represent the only supply-side risk.
“Carcass weights remain substantial, and the average steer weight was 962 pounds the peak week in January. The prior high was two weeks at 960 pounds last year. The pattern in heifer weights is the same,” Koontz explains, in a recent issue of In the Cattle Markets. “It will be interesting, and important, to see the magnitude of any seasonal decline in weights through the spring … With lower corn prices and longer feeding periods then heavy weights will persist. But how heavy and what are the possible further increases? But I am doubtful there will be surprises here.”
Conversely, Koontz says the surprises will come in the margins and on the demand side.
“Packer margins have been tight for several years and there is little in the supply outlook to imply relief,” Koontz says. “The surprise will likely be reduced packing capacity sometime in the next several years. Which plants and what regions? The smallest plants in the regions with the tightest supplies. It will be interesting to see what the resiliency of the processing food system discussion transitions into. Packing capacity is overbuilt for the cattle market we will see during three to five years.”