Negotiated cash fed cattle prices were yet to be fully established through Friday afternoon, based on reports from USDA’s Agricultural Marketing Service (AMS), but the trend appeared decidedly higher. The Texas Cattle Feeders Association reported its members trading at $112/cwt., which was $3 more than the previous week. Although too few to trend, early dressed sales were $2-$5 higher at $182-$185 in Nebraska and the western Corn Belt.
Live Cattle futures closed an average of 31¢ higher on Friday (7¢ to 65¢ higher), helped along by recent strength and what looked to be steady to higher cash fed prices for the week.
Feeder Cattle futures closed an average of 83¢ lower, giving back some of the recent gains, under pressure from higher Grain futures prices. They traded and average of $3.11 higher week to week, though.
Grain markets largely shrugged off the previous day’s monthly World Agricultural Supply and Demand Estimates, given that projections were based on acres from the June 28 Acreage report, which common sense says will change. Between that and potential damage from hot and dry weather, following the interminable rains, grain futures surged on Friday.
After 1¢ higher in expiring spot Jul, Corn futures closed 9¢ to 11¢ higher though Jul ’20 and then mostly 1¢ to 2¢ higher.
Soybean futures closed mostly 10¢ to 14¢ higher.
Wholesale beef values continued to lose seasonal steam. Trade on Friday was lower on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 97¢ lower Friday afternoon at $212.80/cwt. Select was $1.19 lower at $189.60.
Major U.S. financial indices closed sharply higher Friday, apparently with lighter trade and follow-through rally support from expectations for a cut in interest rates.
The Dow Jones Industrial Average closed 243 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 48 points.
Lighter year-over-year carcass weights continue to underscore currentness, while also adding price support. For the week ending June 29, the average dressed steer weight was 854 lbs., which was the same as a week earlier but 11 lbs. lighter than the same week a year earlier, according to USDA’s Actual Slaughter Under Federal Inspection report. The average dressed heifer weight was 1 lb. lighter than the previous week and 3 lbs. lighter than the previous year at 789 lbs.
“One might assume the higher prices (fed cattle) this week means the market has reached its summer low and that may be the case. However, the finished cattle market will continue to be pressured the next several weeks moving through July and August” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Thus, there is a good chance finished cattle prices yo-yo the next several weeks as packers and feedlots jockey for position.”