Cattle futures closed lower Friday ahead of the monthly Cattle on Feed report, which proved to be bearish (see below).
Live Cattle futures closed an average of 64¢ lower, except for an average of 56¢ higher in the front two contracts. They were an average of $1.27 lower week to week on Friday, except for $1.47 higher in spot Jun.
Feeder Cattle futures an average of $1.21 lower. They were an average of $2.81 lower week to week.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand in the Southern Plains to slow on moderate demand in the north through Friday afternoon, according to the Agricultural Marketing Service.
Although too few transactions to establish a trend, there were some dressed delivered trades in Nebraska at $310-$312/cwt. and some FOB live trades in the western Corn Belt at $197.
Based on final established trade the previous week, FOB live prices were $186/cwt. in the Southern Plains $195-$198 in Nebraska and $193-$195 in the western Corn Belt. Dressed delivered prices were $305-$306; prices as high as $310.
Choice boxed beef cutout value was 48¢ lower Friday afternoon at $322.39/cwt. Select was $1.29 lower at $303.11/cwt.
Estimated total cattle slaughter last week of 620,000 head was 5,000 head more than the previous week but 29,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 15 million head was 687,000 head fewer (-4.4%). Estimated year-to-date beef production of 12.6 billion pounds was 197.3 million pounds less (-1.5%).
Turning to row crops, Corn futures closed 3¢ to 4¢ lower. Week to week on Friday, there were an average of 16’3¢ lower through the front six contracts. KC HRW Wheat futures closed mostly 11¢ to 12¢ lower. Soybean futures closed 1¢ to 7¢ higher through May ’25 and then mostly 2¢ to 3¢ lower.
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Major U.S. financial indices closed narrowly mixed Friday.
The Dow Jones Industrial Average closed 15 points higher. The S&P 500 closed 8 points lower. The NASDAQ was down 32 points.
West Texas Intermediate Crude Oil futures on the CME were 52¢ to 56¢ lower through the front six contracts.
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Traders will likely view Friday’s monthly Cattle on Feed report as bearish with more placements than expected.
Feedlots with 1,000 head or more capacity placed 2.0 million head in May (+84,000 head), which was 4.3% more year over year and 6% more than expectations.
In terms of placement weights, 19% went on feed weighing less than 600 lbs., 15% weighing 600-699 lbs., 24% weighing 700-799 lbs., 26% weighing 800-899 lbs., 11% weighing 900-999 lbs. and 4% weighing 1,000 lbs. or more.
Marketings in May of 1.9 million head were slightly higher (+3,000 head), which was in line with expectations.
The June 1 feedlot inventory of 11.6 million head was slightly less than a year earlier (-7,000 head), whereas estimates ahead of the report pegged it 1% lower.