Cattle futures found some relief on Friday from oversold conditions and short covering.
Live Cattle futures closed an average of 48¢ higher (20¢ to 92¢ higher).
Feeder Cattle futures closed an average of 73¢ higher (10¢ to $1.27 higher).
Wholesale beef values weakened on Friday on light to moderate demand.
Choice boxed beef cutout value was 84¢ lower on Friday afternoon at $208.23/cwt. Select was $1.31 lower at $201.64. Rib and Chuck cuts sold mostly steady, while loin cuts sold steady to weak. Beef trimmings traded weak to lower on moderate demand.
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Major U.S. financial indices closed sharply higher again on Friday, fueled by strong quarterly earnings reports and the recent corporate tax cut.
The Dow Jones Industrial Average closed 228 points higher. The S&P 500 closed 18 points higher. The NASDAQ closed 49 points higher.
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Projected cattle price for 2018 rose slightly in the monthly World Agricultural Supply and Demand Estimates (WASDE) released on Friday, reflecting early-year price strength, according to analysts with USDA’s Economic Research Service (ERS).
First-quarter fed steer prices are projected at $120-$124/cwt.; $115-$123 in the second quarter; $110-$120 in the third quarter; $112-$122 in the fourth quarter.
WASDE projects the average fed steer price last year at $121.51
“The 2018 beef production forecast is raised as higher cattle placements in late 2017 are expected to result in higher fed cattle marketings and slaughter in the first half of 2018, say ERS analysts. “Average carcass weights are also expected to be heavier. USDA will release its semi-annual Cattle report Jan. 31, providing estimates of heifers held for breeding and an insight into the number of feeder cattle available for placement during 2018.”