Cash fed cattle trade ended up being another last-hour affair, with potentially another week of light volume. Through late Friday afternoon, the only reported prices from USDA were $109-$110/cwt. in the Texas Panhandle, which was $3 less than the previous week.
Other than 37¢ and 22¢ lower in the front two contracts, Live Cattle futures closed an average of 32¢ higher, except for 15¢ lower in the back contract.
Except for unchanged in the back contract, Feeder Cattle futures closed an average of 46¢ higher.
Boxed beef cutout values were steady to firm on light to moderate demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 25¢ lower in the afternoon at $217.16/cwt. Select was 41¢ higher at $202.02.
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Major U.S. financial indices closed mostly higher Friday, buoyed by oil and energy stocks. Crude Oil futures (WTI-CME) closed $2.18 to $3.04 higher through the next year with uncertainty about increased OPEC production.
Stocks were held in check by continued worries about the impact of a trade war with China.
The Dow Jones Industrial Average closed 118 points higher. The S&P 500 closed 5 points higher. The NASDAQ closed 20 points lower.
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Markets will likely view Friday’s monthly Cattle on Feed report as a touch bearish, with a few more year-over-year placements in May rather than the expected decline.
There were 2.124 million head placed in feedlots (capacity of 1,000 head or more) in May, which was 0.24% more (+5,000 head) than the previous May. Heading into the report, most analysts were expecting a third consecutive month of declines, projecting a decrease of 1-4%.
In terms of placement weights: 20.95% were placed at weights lighter than 600 lbs.; 16.01% at 600-699 lbs.; 22.60% at 700-799 lbs.; 24.67% at 800-899 lbs.; 11.06% at 900-999 lbs.; 4.71% weighing more than 1,000 lbs.
Marketings for May were in line with expectations: 2.056 million head, which was 5.38% more (+105,000 head) than last year.
All told, the on-feed inventory June 1 was 11.553 million head, which was 4.12% more (457,000 head) than the same time a year ago. That’s the heftiest June 1 inventory since the data series began in 1996.
Total frozen poultry supplies were 4% more month-to-month and 7% more than last year.