Cattle futures climbed Friday as Corn futures slid on the bearish Acreage report (see below).
Feeder Cattle futures closed an average of $4.03 higher ($3.15 to $5.20 higher).
Live Cattle futures closed an average of $1.51 higher (65¢ higher at the back to $2.67 higher in new spot Aug).
Week to week on Friday, Feeder Cattle futures were up an average of $11.10 and Live Cattle futures were up an average of $3.68.
Negotiated cash fed cattle trade was mostly slow with light to moderate demand through Friday afternoon, according to the Agricultural Marketing Service.
Although too few to trend, there were a few live trades in the Texas Panhandle at $179/cwt. and at $182-$183 in the western Corn Belt. There were a few dressed trades in Nebraska at $290.
The only established trade for the week was in Kansas where live prices were $2 lower at $178.
Last week, live prices were $180/cwt. in the Southern Plains $182-$185 in Nebraska and $184-$185 in the western Corn Belt. Dressed prices were $290.
Choice boxed beef cutout value was 33¢ lower Friday afternoon at $327.72/cwt. Select was $3.55 lower at $293.63/cwt.
Estimated total cattle slaughter last week of 644,000 head was 5,000 head fewer than the previous week but 3,000 more than the same week last year. Year-to-date estimated total cattle slaughter of 16.3 million head was 580,000 head (-3.4%) less. Estimated year-to-date beef production of 13.34 billion pounds was 635.6 million pounds less (-4.5%).
Corn futures tumbled Friday, closing 26¢ to 35¢ lower through Jly ’24 and then mostly 4¢ to 10¢ lower after USDA released the Acreage report, showing significantly more corn acres than expected (see below).
USDA estimated corn planted area for all purposes this year at 94.1 million acres, in the Acreage report. That was 5.52 million acres more (+6%) than last year, and 2.1 million acres more than the March Prospective Plantings report. Corn acres would be the third highest planted acreage in the United States since 1944. Projected area harvested for grain of 86.3 million acres would be 9% more than last year.
Conversely, soybean planted area for 2023 was estimated at 83.5 million acres, down 5% from last year and 4 million acres fewer than the Prospective Plantings report.
All wheat planted area for 2023 was estimated at 49.6 million acres, up 9% from last year. The 2023 winter wheat planted area of 37.0 million acres was 11% more than last year but 1% less than the previous estimate.
On Friday, Soybean futures closed 72¢ to 77¢ higher through Jan ‘24 and then 28¢ to 56¢ higher through Aug ‘24.
Week to week on Friday, Corn futures were an average of 86’9¢ lower through the front six contracts, while the front six contracts for Soybean were 34’5¢ higher.
USDA estimated all acres for hay harvested this year at 51.98 million acres, which would be 2.4 million acres more (+4.9%) than last year
Major U.S. financial indices closed higher Friday, boosted by another gauge of cooling inflation.
The Personal Consumption Expenditures (PCE) price index, excluding food and energy, increased 0.3% month over month in May and 4.6% year over year, which was less than expected.
The Dow Jones Industrial Average closed 285 points higher. The S&P 500 closed 53 points higher. The NASDAQ was up 196 points.
West Texas Intermediate Crude Oil futures (CME) closed 52¢ to 78¢ higher through the front six contracts.
The quarterly Grain Stocks report issued Friday continued to paint a picture of snugger on-hand supplies.
Corn stocks in all positions on June 1, 2023 totaled 4.11 billion bushels, down 6% year over year. Of the total stocks, 2.22 billion bushels were stored on farms, up 5% from a year earlier. Off-farm stocks of 1.89 billion bushels were 15% less than a year ago.
Soybeans stored in all positions on June 1, 2023 totaled 796 million bushels, down 18% from the same time last year. On-farm stocks totaled 323 million bushels, down 3% from a year ago. Off-farm stocks of 473 million bushels were 26% less than a year ago.
Old-crop all wheat stored in all positions on June 1, 2023 totaled 580 million bushels, down 17% from a year ago. On-farm stocks were estimated at 124 million bushels, up 34% from last year. Off-farm stocks of 456 million bushels were 25% less than a year ago.