Negotiated cash fed cattle trade remained mostly undeveloped through Friday afternoon, with no trends from USDA. But, the Texas Cattle Feeders Association reported its members in the Southern Plains trading cattle at $111/cwt., which was $2 less than the previous week.
Cattle futures basically treaded water on Friday, after stronger pressure earlier in the session, with the lack of cash direction, continued light trade and some apparent positioning ahead of the weekend.
Live Cattle futures closed an average of 35¢ lower.
Except for 30¢ lower in spot Aug and 5¢ lower in Nov, Feeder Cattle futures closed 7¢ to 35¢ higher.
Wholesale beef values were sharply lower for Choice and weak for Select, with light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $2.44 lower Friday afternoon at $204.14/cwt. Select was 64¢ lower at $196.37.
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Major U.S. financial indices held firm to higher Friday, supported by continued strength in quarterly earnings.
The Dow Jones Industrial average closed 94 points higher. The NASDAQ was up 2 points. The S&P 500 closed 3 points higher.
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“Analysis of annual yearling price volatility going back to 1992 shows that price swings this year are on track to be the smallest since 2012,” say analysts with the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor.
For perspective, yearling steer prices (750-800 lbs., basis Oklahoma City) averaged $145.13/cwt. during the first six months of the year, according to LMIC. That’s $6.45 more than the same time period last year. Steer calves in the same market averaged $176.98 for the first six months, $9.61 more than a year ago.
“Based on monthly average prices, annual price swings from 1992-2002 never topped $20/cwt. Since 2012, annual price swings have been greater than $30/cwt. every year. In 2011 and 2012, the high-to-low price swings were $19.49 and $18.34, respectively,” LMIC analysts say. “Annual price swings greater than $70.00 a year were encountered in 2014 and 2015. During the last 25 years, the most frequent annual price range was $15-$20 (6 years). So far this year, the swing in monthly average prices has been $9.39. The difference in the magnitude of price swings based on weekly versus monthly data makes a statement about how much price volatility has been experienced within some of the months, even though price volatility has been less than in past years.”