Weather forecasts continued to whipsaw grain markets on Friday with Corn and Soybean futures closing sharply lower on the wet weekend outlook for the Corn Belt, as well as overbought conditions.
Corn futures closed mostly 22¢ to 32¢ lower.
Soybean futures closed 18¢ to 29¢ lower through Jly ‘24 (except for 6¢ and 14¢ lower in the front two contracts) and then mostly 6¢ to 8¢ lower.
KC HRW Wheat closed mostly 10¢ to 18¢ lower.
Feeder Cattle futures surged an average of $2.80 higher Friday ($2.20 to $3.27 higher) as Corn futures slid lower.
Live Cattle futures tread water with pressure from the week’s softer cash trade and lower wholesale beef prices. They closed an average of 17¢ higher, except for an average of 23¢ lower in the front three contracts.
Negotiated cash fed cattle trade was inactive on light demand in all regions through Friday afternoon, with too few transactions to trend in any region, according to the Agricultural Marketing Service.
For the week, live prices were $2 lower in the Southern Plains at $180/cwt., $3-$4 lower in Nebraska at $182-$185 and $2-$3 lower in the western Corn Belt at $184-$185. Dressed prices were $6 lower in Nebraska at $290 and $6-$10 lower in the western Corn Belt at $290.
Choice boxed beef cutout value was 46¢ lower Friday afternoon at $334.01/cwt. Select was $3.84 lower at $299.96/cwt. The Choice Select spread was the highest since last October at $34.05.
Estimated total cattle slaughter last week of 649,000 head was 15,000 head more than the previous week, but 16,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 15.6. million head was 587,000 head less (-3.6%) that the same time last year. Year-to-date estimated beef production of 12.8 billion pounds was 638 million pounds less (-4.7%).
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Major U.S. financial indices slid Friday as investors appeared more concerned about domestic and global economic growth.
The Dow Jones Industrial Average closed 219 points lower. The S&P 500 closed 33 points lower. The NASDAQ was down 138 points.
West Texas Intermediate Crude Oil futures (CME) closed 17¢ to 35¢ lower through the front six contracts.
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Although bullish supply fundamentals remain, markets could view Friday’s monthly Cattle on Feed report as slightly bearish with May placements about 3% more than pre-report estimates. Placements in May of 1.9 million head were 86,000 more (+4.6%) year over year. That’s for feedlots with 1,000 head or more capacity.
In terms of placement weights, 34% went on feed weighing 699 lbs. or less, 51% weighing 700-899 lbs. and 15% weighing 900 lbs. or more.
Marketing in May of 1.9 million head were 1.7% more than last year, about even with expectations.
Cattle on feed June 1 of 11.5 million head were 2.9% less than the previous year. That was 0.5% more than estimates ahead of the report.