Cattle futures continued mostly lower Friday ahead of the monthly Cattle on Feed report (see below), which could provide some support Monday.
Live Cattle futures were an average of 47¢ lower, except for an average of 65¢ higher in the front two contracts. Week to week on Friday, Live Cattle futures were an average of 85¢ lower (40¢ to $1.30 lower), except for 72¢ higher in spot Aug.
Feeder Cattle futures were an average of 94¢ lower on Friday. They were an average of $1.73 lower week to week (92¢ lower at the back to $3.05 lower at the front).
Negotiated cash fed cattle trade ranged from mostly inactive on light demand in the Southern Plains to slow on light demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live FOB prices were unevenly steady in the Southern Plains at $188/cwt. and $2 lower in the North at $196. Dressed delivered trades were $2 lower at $310/cwt.
Choice boxed beef cutout value was $2.32 lower Friday at $313.83/cwt. Select was 66¢ lower at $298.80.
Choice boxed beef cutout value was $8.23 lower week to week on Friday at $313.83/cwt. Select was $3.51 lower at $298.80. Over the last two weeks, Choice is down $16.60 and Select is down $6.26.
Estimated total cattle slaughter last week of 584,000 was 17,000 fewer than the previous week and 42,000 head fewer (-6.7%) than the same week last year. Year-to-date estimated total cattle slaughter of 17.3 million head was 821,000 head fewer (-4.5%) than the same period last year. Year-to-date estimated beef production of 14.6 billion pounds was 242.5 million pounds less (-1.6%).
Turning to the grain complex, Grain and Soybean futures were mixed Friday in search of a bottom and also likely impacted by the widespread internet outage.
Corn futures closed fractionally mixed to unchanged. Kansas City Wheat futures 7¢ higher through May ’25 and then mostly 3¢ higher. Soybean futures were mostly 7¢ to 10¢ lower.
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Major U.S. financial indices continued lower Friday, as investors sold mega-tech stocks.
The Dow Jones Industrial Average closed 377 points lower. The S&P 500 closed 39 points lower. The NASDAQ was down 144 points.
Heading into the close, West Texas Intermediate Crude Oil futures on the CME were $2.19 to $2.69 lower through the front six contracts.
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Markets will likely view the monthly Cattle on Feed report as friendly with fewer placements than expected.
For feedlots with 1,000 head or more capacity, placements of 1.56 million head in June were 115,000 head less (-6.8%) year over year, which was about 4% less than pre-report expectations.
In terms of placement weights, 39% went on feed weighing less than 700 lbs., 44% weighing 700-899 lbs. and 16% weighing 900 lbs. or more.
Marketings in June of 1.79 million head were 171,000 head fewer (-8.7%) than the previous year, which was 0.5% less than estimates ahead of the report. Marketings were the second lowest for the date since the data series began in 1996.
Cattle on feed July 1 of 11.3 million head were 61,000 head more (+0.5%) than a year earlier, but that was 0.7% less than expectations ahead of the report.
Heifers and heifer calves comprised 40% of the on-feed mix, the same as a year earlier.
Heifer slaughter is 1% less year over year, and cow slaughter is down 14%, through the first six months, according to USDA’s Economic Research Service (ERS). However, the weekly-average percentage of heifers and cows in the slaughter mix during that period is the third most of the last 20 years, according to ERS analysts, in the July Livestock, Dairy and Poultry Outlook.