Negotiated cash fed cattle trade ranged from mostly inactive on light demand to slow on light demand in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. Trade was slow on light to moderate demand in the North.
For the week, FOB live prices were $1 lower in the Southern Plains at $185/cwt. and unevenly steady in the western Corn Belt at $190. Prices in Nebraska the previous week were $190.
Dressed delivered prices the previous week were $301 in Nebraska and $300-$301 in the western Corn Belt.
Choice boxed beef cutout value was 54¢ higher Friday afternoon at $316.75/cwt. Select was 31¢ higher at $301.14/cwt. Week to week on Friday, Choice was up $3.55 but Select was 57¢ lower.
Total cattle slaughter last week of 614,000 head was 74,000 head more than the previous holiday-shortened week. Estimated year-to-date total cattle slaughter of 13.7 million head was 631,000 head fewer (-4.4%) than the same time last year. Estimated year-to-date beef production of 11.6 billion pounds was 198.4 million pounds less (-1.7%).
Cattle futures found some footing Friday, helped along by firm wholesale beef prices.
Live Cattle futures closed an average of 20¢ higher, except for an average of 20¢ lower in two contracts. They were an average of $1.33 lower week to week on Friday, except for 62¢ higher in spot June.
Feeder Cattle futures closed an average of $1.37 higher. However, they were an average of $1.75 lower week to week on Friday.
Grain and Soybean futures weakened Friday on likely fund selling.
Corn futures closed mostly 1¢ to 3¢ lower. KC HRW Wheat futures closed 12¢ to 14¢ lower. Soybean futures 12¢ to 20¢ lower through near Sep and then 2¢ to 9¢ lower.
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Major U.S. financial indices settled slightly lower Friday with pressure including a stronger than expected labor report.
Total non-farm payroll employment increased by 272,000 in May, and the unemployment rate was little- changed at 4.0%, according to the U.S. Bureau of Labor Statistics. In May, average hourly earnings for all employees on private non-farm payrolls increased by 14¢ to $34.91. Over the past 12 months, average hourly earnings have increased by 4.1%.
The Dow Jones Industrial Average closed 87 points lower. The S&P 500 closed 5 points lower. The NASDAQ was down 39 points.
West Texas Intermediate Crude Oil futures on the CME closed narrowly mixed through the front six contracts.
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U.S. beef exports in April were the largest in 10 months at 111,580 metric tons (mt), according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Export value was 5% more year over year at $898.7 million, which was also the highest level since last June.
Through the first four months of 2024, beef export value increased 5% year-over-year to $3.38 billion, despite a 3% decline in volume (423,445 mt).
“Mexico continued to shine on the beef side, along with the Caribbean, Central America and the Middle East,” according to Dan Halstrom, USMEF president and CEO. “These markets are benefiting from foodservice demand and currency advantages compared to the main Asian markets. The headwinds in Asia remain formidable, but the tourism boom in Japan has helped solidify demand and exports have stabilized this year, despite the continued weakness in the yen and strong competition from Australia. Robust retail and e-commerce demand has helped U.S. chilled beef continue to dominate in Korea and Taiwan.”
April beef export value equated to $416.87 per head of fed slaughter, down 6% from a year ago, but the January-April average was still up 5% to $410.25.
April exports of U.S. pork reached the highest volume and value since May 2021. Pork exports totaled 277,910 metric tons (mt) in April, up 14% from a year ago and the fifth largest on record. Export value climbed 18% to $778.8 million, the third highest on record.