Cattle futures closed lower Friday with likely technical selling and profit taking ahead of the three-day weekend magnified by confirmation of more cases of New World screwworm (NWS) near the Texas border and an unconfirmed rumor of a case discovered on this side of the U.S. border.
Live Cattle futures closed an average of $3.55 lower. Feeder Cattle futures closed an average of $7.23 lower.
Week to week on Friday, Live Cattle futures closed mixed, from an average of 5¢ lower in four contracts (mostly up front), to an average of 28¢ higher. During the same period, Feeder Cattle futures closed an average of $1.16 higher (17¢ to $1.95 higher), except for 85¢ lower in the back contract.
Weekly negotiated cash fed cattle trade got underway Friday with prices mainly steady to higher.
Through the afternoon, trade ranged from moderate to active on good demand in Nebraska and was moderate on good demand in Kansas and the western Corn Belt.
FOB live prices were steady to $1 higher in Kansas at $233/cwt., $1 higher in Nebraska at $233 and steady in the western Corn Belt at mostly $232. Dressed delivered prices were steady in Nebraska at mostly $365 and steady to $2 lower in the western Corn belt at mostly $363-$365.
Choice boxed beef cutout value was $1.62 higher Friday afternoon at $362.38/cwt. Select was 48¢ higher at $360.19.
Estimated total cattle slaughter last week of 562,000 head was 9,000 head more than the previous week but 39,000 head fewer (-6.5%)than the same week last year. Year-to-date estimated total cattle slaughter of 1.3 million head was 220,000 head fewer (-14.9%) than the same time last year.
Estimated beef production last week of 503.4 million pounds was 10.1 million pounds more than the previous week but 21.2 million pounds less (-4.0%) than the same week last year. Estimated year-to date beef production of 1.1 billion pounds was 163.9 million pounds less (-12.7%).
Grain and Soybean futures closed higher on Friday with likely short covering and positioning ahead of the three-day weekend.
Corn futures closed 2¢ to 4¢ higher through Jly ’27, perhaps also supported by lingering doubts about USDA’s high yield estimates. However, they were down an average of 18’4¢ through the front six contracts week to week on Friday, pressured by USDA’s continued high yield estimates in the January World Agricultural Supply and Demand Estimates.
KC HRW Wheat futures closed 8¢ to 10¢ higher with an added boost from weather premium tied to weekend weather forecasts.
Soybean futures closed mostly 4¢ higher.
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Major U.S. financial indices closed little changed Friday.
The Dow Jones Industrial Average closed 83 points lower. The S&P 500 closed 4 points lower. The NASDAQ was down 14 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 25¢ to 28¢ higher through the front six contracts.
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USDA’s Economic Research Service (ERS) increased projected feeder steer prices (750-800 lbs., Oklahoma City) for 2026 in the January Livestock, Dairy and Poultry Outlook. Compared to the previous month, forecast prices increased by $12 to $352/cwt. in the first quarter, $355 in the second quarter and $359 in the third quarter for an annual average price of $357.
“Starting off 2026, weekly prices for slaughter steers and feeder steers have recovered more than 60% of the decline from their respective highs last year to the lows that occurred in November,” ERS analysts say. They explain feeder steer prices last year peaked at $383.48 in Oklahoma City the middle of October. Prices then declined $66 over the course of six weeks to $317.71. By Jan. 5, prices were $362.34, which was $93 more year over year, representing a 68% recovery from the late-2025 price decline.
As mentioned in Cattle Current earlier last week, USDA increased slightly the projected five-area direct weighted average fed steer price, in the January World Agricultural Supply and Demand Estimates (WASDE). Compared to the previous month, expected prices were $232/cwt. in the first quarter, $234 in the second and $237 in the third for an annual average of $236, which was $1 higher.
Similar to the feeder steer price trajectory, five-aera direct weighted average FOB live fed steer prices peaked last year at $244.25/cwt. the week ending August 24, 2025. Prices declined nearly $33 to $211.53 the week ending November 30, 2025. Prices had recovered 62% by the middle of this month.
Estimated beef production for this year of 25.74 billion pounds was projected slightly higher than the previous month and would be 265 million pounds less (-1%) than the forecast total for 2025.