Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices were $3-$4 lower in the Southern Plains at $137/cwt., steady in Colorado at $145, steady to $5 higher in Nebraska at $145-$150 and $2-$5 higher in the western Corn Belt at $147-$150. Dressed prices were $4-$8 higher at $234-$238.
Through Thursday, the five-area direct average fed steer price was 77¢ higher on a live basis at $144.50/cwt. The average price in the beef was $5.18 higher at $234.91.
Estimated total cattle slaughter last week of 666,000 head was 1,000 head fewer than the previous week but 6,000 head more than the same week last year. Estimated year-to-date total cattle slaughter of 16.24 million head was 159,000 more than last year. Estimated year-to-date beef production of 13.45 billion lbs. was 127.10 million lbs. more than the same time last year.
Live Cattle futures closed narrowly mixed, from an average of 26¢ lower to an average of 16¢ higher.
Choice Boxed beef cutout value was 32¢ higher Friday afternoon at $264.98/cwt. Select was 8¢ higher at $245.02.
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Major U.S. financial indices rallied higher Friday. That was despite the closely watched University of Michigan Consumer Sentiment Index declining 0.2 points to a record low 50.0. Apparently, investors were emboldened by a slight easing of long-term inflation expectations within the report.
The Dow Jones Industrial Average closed 823 points higher. The S&P 500 closed 116 points higher. The NASDAQ was up 375 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.70 to $3.35 higher through the front six contracts.
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On the surface, markets could view the latest monthly Cattle on Feed report as neutral to slightly bearish with another record number of cattle on feed but fewer placements than analyst expectations ahead of the report.
Beneath the surface, some will likely question the accuracy of on-feed numbers continuing the record pace when cash markets in the North suggest cattle feeders are pulling green cattle forward.
Feedlots with 1,000 head or more capacity placed 1.87 million head on feed in May, which was 41,000 head fewer (-2.1%) than last year and 1.9% less than expectations ahead of the report.
In terms of placement, weights, 34% went on feed weighing 700 lbs. or less, 50% weighing 700-899 lbs. and 16% weighing 900 lbs. or more.
Marketings in May of 1.91 million head were 44,000 head more (+2.4%) than last year.
Cattle on feed June 1 of 11.70 head was 142,000 head more (+1.2%) than the previous year and 0.3% less than pre-report expectations. As mentioned, the number was record large for the date.