Cattle futures took a step higher Friday, apparently buoyed by bullish expectations for the USDA reports that came out later that day (see below).
Feeder Cattle futures closed an average of $2.38 higher.
Live Cattle futures closed an average of $1.42 higher (85¢ higher at the back to $2.02 higher toward the front).
Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Friday afternoon with too few transactions to trend, according the Agricultural Marketing Service.
For the week, live prices were $1 lower in the Southern Plains at $136/cwt. and $1.00 to $1.50 lower at $139.00-$143.50 in Nebraska and $142-$144 in the western Corn Belt. Dressed prices in Nebraska were $3 lower at $227.
Choice Boxed beef cutout value was 64¢ lower Friday afternoon at $267.12/cwt. Select was $1.97 higher at $242.50/cwt.
Estimated total cattle slaughter last week of 665,000 head was 9,000 head fewer than the previous week, but 10,000 head more than the same week last year. Estimated year-to-date cattle slaughter of 18.8 million head was 212,000 more (+1.1%). Estimated year-to-date beef production of 15.5 billion lbs. was 152.6 million lbs. more (+1.0%).
Corn futures closed 9¢ to 11¢ lower through new-crop contracts and then mostly 4¢ to 5¢ lower, apparently pressured by favorable weather and the agreement between Ukraine and Russia which is supposed to enable resumption of Ukraine grain exports in the Black Sea region.
Soybean futures closed mostly 12¢ to 16¢ higher.
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Major U.S. financial indices closed lower Friday, led by tech stocks, but closed higher week to week.
The Dow Jones Industrial Average closed 137 points lower. The S&P 500 closed 37 points lower. The NASDAQ was down 225 points.
CME WTI Crude Oil futures closed 94¢ to $1.65 lower through the front six contracts.
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USDA’s semiannual Cattle report published Friday provided some clarity to how much the nation’s beef cow herd is contracting, and how fast.
There were 30.35 million beef cows in the national inventory July 1, which was 750,000 fewer (-2.4%) than the same time last year.
There were 4.15 million beef heifers retained as replacements, which was 150,000 fewer (-3.5%) than a year earlier.
Dairy cows numbered 9.45 million head, which was 50,000 head fewer (-0.5%)
Total cattle and calves of 98.8 million head were 2 million fewer (-2.0%) year over year.
The calculated number of calves outside feedlots July 1 of 35.7 million head was 1 million head fewer (-2.7%) than the same time last year.
The 2022 calf crop is projected to be 34.6 million head, which would be 485,400 head fewer (-1.4%).
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Markets will likely view Friday’s monthly Cattle on Feed report as neutral to slightly bearish, due to more placements than expected.
Cattle feeders placed 1.63 million head on feed in June (feedlots with 1,000 head or more capacity). That was 40,000 head fewer (-2.4%) than the same time last year but about 3% more than analysts expected ahead of the report.
In terms of placements weights, 39% went on feed weighing 699 lbs. or less, 45% weighing 700-799 lbs. and 16% weighing 900 lbs. or more.
Cattle feeders marketed 2.06 million head in June, which was 40,000 head more (+2.0%) year over year, in line with expectations.
There were 11.34 million head of cattle on feed July 1, which was 45,000 head more (+0.4%) than the same time last year.
According to the semiannual Cattle report, cattle on feed in feedlots with more than 1,000 head capacity accounted for 84.6% of the cattle on feed July 1.