Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
Through Thursday, AMS reported 43,484 confirmed negotiated sales for the week, compared to 76,273 head the previous week and 86,986 the previous year.
Although there were too few transactions to trend, a few live sales traded $1-$2 higher in Nebraska at $125-$126/cwt. and a few $2 higher in the western Corn Belt at $126.
The previous week, live prices were at $122/cwt. in the Southern Plains and $124 in the North. Dressed prices were at $195.
Through Thursday, the five-area direct average steer price was $2.69 higher week to week on a live basis at $125.54/cwt. The average steer price in the beef was $2.32 higher at $197.86.
Lower Corn futures helped Feeder Cattle futures gain steam on Friday, while Live Cattle inched higher with relatively few traded in the cash market this week.
Live Cattle futures closed an average of 19¢ higher, from 53¢ higher in Dec ’21 to 3¢ higher in Jun ’22.
Feeder Cattle futures closed an average of $2.40 higher, from $2.40 higher at the front to 93¢ higher toward the back.
Choice boxed beef cutout value was $2.86 lower Friday afternoon at $304.56/cwt. Select was 4¢ higher at $276.18.
Grain futures closed mostly down on Friday with more rain forecast. As well, the Supreme Court ruled in favor of small refineries seeking exemptions from federal requirements to blend ethanol or other bio-fuels with their products.
Corn futures closed mostly 10¢ to 17¢ lower through July ’23.
Soybean futures closed mostly 20¢ to 40¢ lower through Sept ’22.
Major U.S. financial indices closed the week on a mostly steady note, reflecting easing investor worries about the Federal Reserve raising interest rates – at least for now. The S&P had its best week since February. New economic reports out on Friday indicated personal spending was stagnate in May, and consumer sentiment grew in June, but by less than expected.
The Dow Jones Industrial Average closed 237 points higher. The S&P 500 closed 14 points higher. The NASDAQ was down 9 points.
USDA’s monthly Cattle on Feed report for June (feedlots with 1,000 head or more capacity) will likely be viewed as bullish. Compared to expectations ahead of the report, placements were 2% less, marketings were on par and cattle on feed were slightly less.
Cattle feeders placed 1.91 million on feed in May, which was 141,000 head fewer (-6.87%) than the same time a year earlier.
In terms of placement weights, 31.92% went on feed weighing up to 699 lbs. 50.81% weighing 700-899 lbs. and 17.27% weighing 900 lbs. or more.
Feeders marketed 355,000 head more (+23.43%) in May than the previous year.
Cattle on feed June 1 were 11.70 million head, the second most for the date since the data series began in 1996. However, the total was just 28,000 more (+0.24%) than the previous year.