Through Friday afternoon’s report, weekly negotiated cash fed cattle trade had yet to be established in the Southern Plains. Prices were higher in other regions, though. Live prices were $3-$4 higher in Nebraska at $163-$164/cwt. and $2-$4 higher in the western Corn Belt at $164, where dressed prices were $3 higher at $260. Dressed trade in Nebraska the previous week was at $257. The prior week, live prices were $162 in the Southern Plains.
Choice boxed beef cutout value was 63¢ lower Friday afternoon at 287.28/cwt. Select was $1.21 higher at $277.08/cwt.
Estimated total cattle slaughter last week of 618,000 head was 9,000 head fewer than the previous week and 33,000 head fewer than the same week last year. Estimated year-to-date cattle slaughter was 121,000 head fewer (-2.3%) than last year. Estimated year-to-date beef production of 4.1 billion lbs. was 181.1 million pounds less (-4.2%).
Cattle futures took a breather Friday amid likely profit taking and positioning ahead of what turned out to be a neutral-to-positive Cattle on Feed report (see below).
Feeder Cattle futures closed narrowly mixed, from an average of 20¢ lower to an average of 16¢ higher. They were an average of $3 higher week to week.
Live Cattle futures closed an average of 25¢ lower, except for an average of 5¢ higher in the front two contracts. Week to week, there were an average of 70¢ higher.
Wheat futures dragged the grain complex lower Friday on chatter about a potential ceasefire between Russia and Ukraine.
KC HRW Wheat closed 19¢ to 22¢ lower.
Corn futures closed 8¢ to 10¢ lower through Jly ‘24 and then 3¢ to 5¢ lower.
Soybean futures closed mostly 7¢ to 14¢ lower.
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Major U.S. financial indices closed lower Friday, pressured by another reading of too-hot inflation. The personal consumption expenditures index (PCI) — closely watched by the FOMC — was higher than the trade expected. Excluding food and energy the PCI was 0.6% higher month to month in January and 4.7% higher year over year.
The Dow Jones Industrial Average closed 336 points lower. The S&P 500 closed 42 points lower. The NASDAQ was down 195 points.
West Texas Intermediate Crude Oil futures (CME) closed 66¢ to 93¢ higher through the front six contracts.
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Markets will likely view Friday’s monthly Cattle on Feed report as neutral to a touch friendly with slightly fewer placements and cattle on feed than estimated ahead of the report.
Feedlots with 1,000 head or more capacity placed 1.9 million head in January, which was 3.6% less than the previous year.
In terms of placement weights, 43% went on feed weighing 699 lbs. or less; 49% weighing 700-899 lbs.; 8% weighing 900 lbs. or more.
Cattle feeders marketed 1.8 million head in January, which was 4.2% more than last year.
Cattle on feed of Feb. 1 of 11.7 million head were 505,000 head fewer (-4.1%).
The latest report also includes summary data for the past two years.
Last year, 12.8% of fed cattle marketings came from feedlots with less than 1,000 head of capacity (3,325,000) versus 22,590,000 for +1,000 of 22,590,000. Total marketings were 25,915,000
Total fed cattle marketings in 2022 were 73,000 head more (+0.3%) year over year.
There were 1,000 fewer feedlots with less than 1,000-head capacity last year (24,000) than the year before. They marketed 5,000 head more than the previous year (3.32 million head).
There were 27 fewer feedlots with 1,000 head or more capacity. They marketed 68,000 head more than the previous year. Feedlots with 16,000 head or more capacity grew or remained the same — 265 feedlots in 2021 versus 273 in 2022.