Cattle futures charged higher Friday, supported by the hefty rise in cash fed cattle prices. Live Cattle futures closed an average of $2.41 higher ($1.92 to $3.67 higher). Feeder Cattle futures closed an average of $4.13 higher.
Negotiated cash fed cattle trade ranged from slow on moderate demand to a standstill through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $1 higher in the Southern Plains at $186/cwt., $5-$6 higher in Nebraska at $195-$196 and $2-$3 higher in the western Corn Belt at $193-$195. Some trades were as high at $197 in the latter two regions. Dressed delivered prices were $4-$5 higher in Nebraska and the western Corn Belt at $305-$306. Dressed delivered prices were as high as $308 in Nebraska and $309 in the western Corn Belt.
Choice boxed beef cutout value was $1.58 higher Friday afternoon at $319.89/cwt. Select was $4.56 higher at $303.81/cwt.
Estimated total cattle slaughter last week of 615,000 head was 1,000 head more than the previous week but 21,000 head fewer than the same week last year. Year-to-date total estimated cattle slaughter of 14.4 million head was 654,000 head fewer (-4.4%). Estimated year-to-date beef production of 12.1 billion pounds was 191 million pounds less (-1.6%).
Turning to row crops, Grain and Soybean future softened Friday on likely profit taking. Corn futures closed mostly 3¢ to 5¢ lower. KC HRW Wheat futures closed mostly 12¢ lower. Soybean futures closed mostly 5¢ to 11¢ lower.
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Major U.S. financial indices were little changed Friday.
The Dow Jones Industrial Average closed 57 points lower. The S&P 500 closed 2 points lower. The NASDAQ was up 21 points.
West Texas Intermediate Crude Oil futures on the CME closed 17¢ to 38¢ lower through the front six contracts.
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Wholesale beef prices continued to gain on seasonal demand last week.
Choice boxed beef cutout value was $3.14 higher week to week on Friday at $319.89/cwt. Select was $2.67 higher at $303.81. Choice is up $6.69 over the past two weeks.
“Both the Choice and Select beef cutout values have been methodically increasing the past few weeks as the grilling season is headed for the heart of summer,” says Andrew P. Griffith, agricultural economist at the University, in his weekly market comments.”
Griffith points out higher wholesale beef prices ultimately boost retail beef prices. So, upside potential will be etched by consumer willingness to pay more.
“Increasing retail beef prices lends itself to supporting direct to consumer beef sales as relative prices are expected to narrow,” Griffith says.