Cattle futures closed lower Friday on likely week-end profit taking.
Live Cattle futures were an average of $1.06 lower (65¢ lower at the back to $1.55 lower in spot Jan). Feeder Cattle futures closed an average of $3.74 lower.
Week to week on Friday, Live Cattle futures closed an average of $1.12 higher (5¢ to $1.67 higher), except for an average of $1.39 lower in the front three contracts. During the same period, Feeder Cattle futures were mixed, an average of $1.50 higher in the front five contracts (12¢ higher to $4.62 higher) and then an average of 43¢ lower.
Negotiated cash fed cattle trade was light on good demand in the North through Friday afternoon, according to the Agricultural Marketing Service. For the week, FOB live prices were mainly steady in Nebraska and the western Corn Belt at mostly $232/cwt. Dressed delivered prices were $5 higher at $365.
FOB live trades in Kansas the previous week were at mostly $232.
Choice boxed beef cutout value was $1.16 lower Friday afternoon at $355.63/cwt. Select was 11¢ higher at $352.17. Week to week on Friday, Choice boxed beef cutout value was $5.66 higher and Select was $5.25 higher.
Estimated total cattle slaughter last week of 553,000 head was 79,000 head more than the previous holiday-shortened week but 38,000 head fewer (-6.4%) than the same week last year. Estimated beef production for the week of 493.3 million pounds was 69.6 million pounds more than the previous week but 27.1 million pounds less (-5.2%) than a year earlier.
Grain and Soybean futures were mainly firm Friday, ahead of next Monday’s World Agricultural Supply and Demand Estimates.
Corn futures closed fractionally lower. KC HRW Wheat futures were unchanged to fractionally lower through near Dec and then mostly 1¢ lower. Soybean futures closed 1¢ higher through near Aug and then mostly 1¢ lower.
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Major U.S. financial indices closed higher Friday, supported by signs of a firm labor market.
Total non-farm payroll employment increased by only 50,000 in December but the unemployment rate inched slightly lower to 4.4%, according to the U.S. Bureau of Labor Statistics.
In December, average hourly earnings for all employees on private non-farm payrolls rose by 12¢, to $37.02. Over the past 12 months, average hourly earnings have increased by 3.8%.
The Dow Jones Industrial Average closed 237 points higher. The S&P 500 closed 44 points higher. The NASDAQ was up 191 points.
West Texas Intermediate Crude Oil futures (CME) were $1.06 to $1.36 higher through the front six contracts.
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U.S. beef exports continue lower year over year but showed signs of strengthening, according to the latest data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 93,448 metric tons (mt) in October, down 11% year over year but the largest since June and 16% above the low volume posted in September. Export value was also the highest since June at $759.5 million, down 12% from a year ago but 15% above September.
“The latest export data confirm what I consistently hear from customers across the world and from our international staff – that global demand for U.S. red meat remains robust, despite tight supplies and formidable market access barriers,” says USMEF President and CEO Dan Halstrom. “Obviously, regaining access for U.S. beef in China is our most urgent priority, as industry losses from this lockout are enormous. But we are also hopeful that ongoing trade negotiations will remove barriers in other destinations where consumers have a growing appetite for high-quality red meat.”
January-October beef exports totaled 949,471 mt, down 11% from the 2024 pace, while value was down 10% to $7.79 billion. When excluding China from these results, exports were down 3% in volume and just 1% in value compared to the first 10 months of 2024.
October beef export value equated to $364.78 per head of fed slaughter, down 4% from a year ago. The January-October average was $390.28 per head, down 5% from the same period in 2024.
For broader context, pork exports totaled 264,657 mt in October, up 5% from a year ago. Value was 7% more at $762.1 million. Both volume and value were the largest since March.
January-October pork exports were 2.43 million mt, just 2% below the record pace of 2024. Export value was also down 2% to $6.93 billion. The year-over-year difference is mostly due to a 20% decline in exports to China (which are mainly variety meats), where U.S. pork is subject to burdensome retaliatory duties.