Lower Corn futures and producer leverage demonstrated by the week’s cash fed cattle trade helped push Cattle futures higher on Friday.
Feeder Cattle futures closed an average of $2.58 higher ($1.80 at the back to $3.27 higher toward the front).
Live Cattle futures closed an average of $1.13 higher (42¢ higher near the back to $2.42 higher at the front).
Negotiated cash fed cattle trade ranged from slow with light to moderate demand in the North, to limited on light demand in the South through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices were steady to $1 lower in the Southern Plains at $178/cwt., steady to $1 higher in Nebraska at $183-$185 and steady to $3 higher in the western Corn Belt at $183-$184. Dressed prices were steady at $290.
Choice boxed beef cutout value Friday afternoon was $2.97 lower at $316.90/cwt. Select was $4.34 lower at $285.63/cwt.
Estimated total cattle slaughter for the holiday-shortened week of 539,000 head was 108,000 head fewer than the previous week and 49,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 16.8 million head was 3.6% less year over year. Year-to-date estimated beef production of 13.8 billion pounds was 676.9. million pounds less (-4.7%).
Corn and Soybean futures closed lower on a wetter weekend outlook and perhaps some positioning ahead of next week’s World Agricultural Supply and Demand Estimates, which will be USDA’s first opportunity to make adjustments to forecast yields.
Corn futures closed mostly 6¢ to 12¢ lower.
Soybean futures closed mostly 16¢ to 21¢ lower.
KC HRW Wheat closed 21¢ to 25¢ lower.
Major U.S. financial indices closed lower again Friday on lingering rate hike fears, despite a weaker jobs report than expected.
Total non-farm payroll employment increased by 209,000 in June, according to the U.S. Bureau of Labor Statistics. The unemployment rate was little changed at 3.6%. In June, average hourly earnings for all employees on private non-farm payrolls rose by 12¢ to $33.58.
The Dow Jones Industrial Average closed 187 points lower. The S&P 500 closed 12 points lower. The NASDAQ was down 18 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.57 to $2.06 higher through the front six contracts.
U.S. beef exports improved month to month in May, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). However, exports remain less than last year’s record totals.
Beef exports totaled 116,159 metric tons (mt) in May, down 14% year over year but up 4% from the previous month. Export value was $874.7 million, down 19% year over year but 2% above April. May exports strengthened to Mexico, Taiwan and South Africa. Export value to Canada was the highest in nearly eight years. Beef variety meat exports were the largest in 12 months at just under 27,000 mt.
“U.S. beef exports face considerable headwinds in 2023, on both the supply and demand side, especially when compared to last year’s massive totals,” says Dan Halstrom, USMEF president and CEO. “To address tighter beef supplies, USMEF has heightened efforts to showcase underutilized cuts, even in our well-established markets. It’s also encouraging to see beef variety meat exports maintain a strong pace, as this is essential for maximizing carcass value.”
Beef export value equated to $399.71 per head of fed slaughter in May, down 21% from a year ago. The January-May average was $391.66, down 19%.