Cattle futures broke higher Friday buoyed by stronger negotiated cash fed cattle prices and a boost in wholesale beef values.
Live Cattle futures closed an average $3.58 higher. Feeder Cattle futures closed an average of $7.91 higher. Week to week on Friday, Live Cattle futures closed an average of $6.63 higher, and Feeder Cattle futures closed an average of $12.63 higher ($9.92 higher at the front to $13.98 higher at the back).
Negotiated cash fed cattle trade was limited on moderate demand in Kansas through Friday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some FOB live trades at $232/cwt.; price the previous week was $229.
Trade was light to moderate on moderate demand in the North. Based on the latest established trade, FOB live prices were $2 higher in Nebraska at $232 and steady to $2 higher in the western Corn Belt at $230-$232. Dressed delivered prices were $360, which was $4 higher in Nebraska and steady to $4 higher in the western Corn Belt.
Choice boxed beef cutout value was $2.52 higher Friday afternoon at $349.97/cwt. Select was $4.54 higher at $346.92. Week to week on Friday, Choice was $1.24 lower, but Select was $3.12 higher.
The grain complex continued lower on Friday, pressured by technical selling and favorable South American weather.
Soybean futures closed fractionally lower to 2¢ lower through Aug ’27. Corn futures closed 1¢ to 2¢ lower. KC HRW Wheat futures closed unchanged to fractionally mixed.
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Major U.S. financial indices closed mixed on Friday.
The Dow Jones Industrial Average closed 319 points higher. The S&P 500 closed 12 points higher, but the NASDAQ was down 6 points.
West Texas Intermediate Crude Oil futures (CME) closed 1¢ to 10¢ lower through the front six contracts.
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As the new year gets underway, here’s some perspective on cattle prices year over year the last week of December:
- The weekly weighted average five-area direct FOB live fed steer price was $30.92 more (15.6%) year over year at $229.33/cwt. The weekly weighted average dressed delivered fed steer price was $49.48 more (16.1%) at $356.53. The CME Feeder Cattle Index was $87.60 (33.6%) higher at $348.65.
- Prices for Medium and Large #1 feeder steers weighing 600-700 lbs. were significantly higher, based on USDA’s weekly stocker summary. The average price the last week of December was $108.98 higher in the North Central region at $413/cwt., $107.77 higher in the South Central region at $392.28 and $94.77 higher in the Southeast at $363.32. That represented an increase of 35-38%.
- Although wholesale beef values never found seasonal holiday spark, Choice boxed beef cutout value was $36.54 higher (11.4%) year over year at $356.12/cwt., while Select was $58.58 higher (20.3%) at $347.46. The Choice-Select spread was $8.66, which was $22.04 less (-71.8%).
- Retail beef prices continued to surge higher. Based on November data — the most recent available data from USDA — Choice retail value was $1.76 higher (21.2%) year over year at $10.08 per pound. The all fresh retail beef value was $1.34 higher (16.6%) at $9.40.
- Along with extraordinary consumer beef demand, declining cattle numbers and beef production explain the price increases. Year to date, through Dec. 26, estimated total cattle slaughter of 28.9 million head was 2.1 million head fewer (-6.8%) less. Estimated total beef production of 25.3 billion pounds was 1.1 billion pounds less (-4.0%).