Cattle futures were higher Friday ahead of the monthly Cattle on Feed and semiannual Cattle inventory reports (see below).
Live cattle futures were an average of 67¢ higher.
Feeder Cattle futures were an average of $2.08 higher.
Week to week on Friday, Live Cattle futures were $3.80 higher and Feeder Cattle futures were $8.34 higher.
Negotiated cash fed cattle trade ranged from limited on moderate demand in the Southern Plains to light on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
There were too few trades to establish a trend in any region, however there were some early FOB live trades at $230-$237.50/cwt. in the Southern Plains and $240-$242 in the North where early dressed delivered prices were $375-$380.
Last week, FOB live prices were $230/cwt. in the Texas Panhandle, $230-$231 in Kansas and $240 in the North where dressed delivered prices were $380.
Choice boxed beef cutout value was $1.41 lower Friday afternoon at $366.68. Select was $2.13 lower at $344.87. Week to week on Friday, Choice was $6.87 lower and Select was $6.62 lower.
Estimated total cattle slaughter last week of 549,000 head was 14,000 head fewer than the previous week and 56,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 16.7 million head was 1.2 million head less (-6.5%) than the same time last year. Estimated year-to-date beef production of 14.6 billion pounds was 513.2 million pounds less (-3.4%).
Grain futures were lower Friday beneath the ongoing weight of positive crop progress and weather.
Corn futures were 1¢ to 2¢ lower. Kansas City Wheat futures were mostly 1¢ lower. Soybean futures were mainly 1¢ to 3¢ lower.
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Major U.S. financial indices closed higher Friday, supported by strong quarterly corporate earnings reports and the week’s positive trade progress.
The Dow Jones Industrial Average closed 208 points higher. The S&P 500 closed 25 points higher. The NASDAQ was up 50 points.
West Texas Intermediate Crude Oil futures (CME) were 67¢ to 87¢ lower through the front six contracts.
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Markets will likely view Friday’s monthly Cattle on Feed report as bullish with significantly fewer placements than expected.
Feedlots with 1,000 head or more capacity placed 1.4 million head in June, which was 123,000 head fewer (-7.9%) year over year and 6% fewer than expectations ahead of the report.
In terms of placement weights, 38% went on feed weighing 699 lbs. or less, 45% weighing 700-899 lbs. and 17% weighing 900 lbs. or more.
Cattle marketed in June of 1.7 million head were 79,000 head fewer (-4.4%) than the same time last year, which was slightly less than the average of analyst estimates ahead of the report.
Cattle on feed July 1 of 11.1 million head were 180,000 head fewer (-1.6%) year over year, which was 1.6% less than expectations. The 4.2 million heifers on feed were 5% less year-over-year.
USDA also issued the mid-year Cattle inventory report Friday. The report was cancelled last year, so these comparisons for July 1 are relative to the same time in 2023.
Beef cows numbered 28.7 million, which was 350,000 head fewer (-1.2%) than two years earlier but 1% more than expectations ahead of the report. Beef replacement heifers of 3.7 million head were 100,000 head fewer (-2.6%).
All cattle and calves of 94.2 million head were 1.2 million head less (-1.3%) than the same time in 2023, slightly more than expected.
Depending on who is interpreting the two reports, and the mad dash for calves and feeder cattle, reduced cow slaughter and a declining percentage of heifers on feed, it appears herd rebuilding has begun.