Negotiated cash fed cattle trade was slow to moderate with moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices in the Texas Panhandle were $2 higher (compared to two weeks earlier) at $180/cwt. Live prices in Kansas were unevenly steady at $180 (a few up to $187) with live delivered prices at $184-$185. Prices in Nebraska were mostly $2 higher at $188 with a few up to $190. In the western Corn Belt, live prices were mostly $3-$4 higher at $188.
Dressed prices (FOB) in Nebraska were $8-$10 higher at $300.
Choice boxed beef cutout value was 18¢ higher Friday afternoon at $302.74/cwt. Select was $2.02 higher at $276.73/cwt.
Estimated total cattle slaughter last week of 628,000 head was 5,000 head fewer than the previous week and 35,000 head fewer (-5.3%) than the previous year. Year-to-date estimated total cattle slaughter of 18.1 million head was 700,000 head fewer (-3.7%) than the same time last year. Estimated year-to-date beef production of 14.8 billion pounds was 735.5 million pounds less (-4.7%).
As for futures, Live Cattle futures closed an average of 40¢ lower Friday, except for an average of 6¢ higher in two contracts.
Conversely, stronger cash prices and softer Corn futures helped Feeder Cattle futures gain an average of $1.11. They could be challenged Monday, however, with what will likely be considered a bearish Cattle on Feed report (see below).
Corn futures softened again with likely profit taking. They closed 7¢ to 10¢ lower through Dec ‘24 and then 5¢ to 6¢ lower.
KC HRW Wheat closed mostly 14¢ to 15¢ lower.
Soybean futures closed mostly 1¢ to 2¢ lower, except for 6¢ and 2¢ higher in old-crop contracts.
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Major U.S. financial indices closed mixed and little changed Friday.
The Dow Jones Industrial Average closed 2 points higher. The S&P 500 closed 1 point higher. The NASDAQ was down 30 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.10 to $1.42 higher through the front six contracts.
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Markets will likely view Friday’s Cattle on Feed report as bearish with more June placements than expected.
Placements in feedlots with 1,000 head or more capacity were 1.68 million head in June, which was 44,000 head more (+2.7%) than the previous year. That was 4.6% more that the average of analyst expectations ahead of the report.
In terms of placement weights, 39% went on feed weighing 699 pounds or less, 45% weighing 700-899 pounds and 16% weighing 900 pounds or more.
Marketings in June of 1.96 million head were 104,000 head fewer (-5.0%) year over year, which was in line with pre-report estimates.
Cattle on feed July 1 of 11.20 million head were 201,000 head fewer (-1.8%) than the previous year, which was also in line with pre-report estimates.
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National beef cow liquidation continues, and heifer retention has yet to begin, according to Friday’s semiannual USDA Cattle report.
There were 29.4 million beef cows in the U.S. July 1, which was 800,000 head fewer (-2.6%) year over year. The number of beef replacement heifers was 100,000 head fewer (-2.4%) at 4.0 million head. This year’s calf crop was estimated to be 33.8 million head, which would be 664,500 head fewer (-1.9%) than the previous year.
The calculated number of cattle outside feedlots July 1 — calves under 500 pounds, other heifers and steers weighing more than 500 pounds — was 34.4 million, which was 1.3 million head fewer (-3.6%) than the same time last year.
Total cattle and calves in the U.S. July 1 of 95.9 million was 2.7 million fewer (-2.7%) than a year earlier.