Negotiated cash fed cattle trade on Friday ranged from a standstill in the Southern Plains to slow on light demand in the North, but with too few transactions to trend, according to the Agricultural Marketing Service. The previous week, FOB live prices were $172/cwt. in the Southern Plains, $173 in Nebraska and $175 in the western Corn Belt. Dressed delivered prices were $272-$275 in Nebraska and $275 in the western Corn Belt.
Choice boxed beef cutout value was 79¢ lower Friday afternoon at 295.50/cwt. Select was 71¢ lower at $283.05/cwt. Week to week, Choice was up $6.24 and Select was $11.20 higher.
Cattle futures mainly paddled in place Friday ahead of the monthly Cattle on Feed report (see below) and awaiting the week’s cash fed cattle direction.
Feeder Cattle futures closed narrowly mixed, from an average of 35¢ lower in the front five contracts to an average of 24¢ higher. They were an average of $4.06 higher week to week.
Live Cattle futures closed narrowly mixed, from an average of 24¢ lower to an average of 14¢ higher. Week to week, they were up an average of $2.48.
Corn futures closed narrowly mixed, from 1¢ lower to 1¢ higher.
KC HRW Wheat futures closed mostly 2¢ to 4¢ higher.
Soybean futures closed fractionally lower to 1¢ lower through Mar ’25 and then mostly fractionally higher.
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Major U.S. financial indices surged higher Friday, underpinned by bullish consumer data. Consumer sentiment was 13.1% higher month to month in January and reached the highest level since July 2021, according to the University of Michigan Surveys of Consumers.
The Dow Jones Industrial Average closed 395 points higher. The S&P 500 closed 58 points higher. The NASDAQ was up 255 points.
West Texas Intermediate Crude Oil futures (CME) closed 67¢ to 71¢ lower through the front six contracts.
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Markets should view Friday’s monthly Cattle on Feed report as neutral, coming in about dead even with pre-report estimates.
Feedlots with 1,000 head or more capacity placed 1.7 million head in December, which was 80,000 head fewer (-4.5%) than the prior year.
In terms of placement weights, 50% went on feed weighing 699 pounds or less, 38% weighing 700-899 pounds and 12% weighing 900 pounds or more.
Marketings in December of 1.7 million head were 16,000 head fewer (-0.9%) than a year earlier.
Cattle on feed Jan. 1 of 11.9 million head were 248,000 more (+2.1%) than the same time last year.