Overall, Cattle futures extended gains Friday as nearby Corn futures continued to soften.
Feeder Cattle futures closed an average of 58¢ higher. They were an average of $6.23 higher week to week on Friday as Corn futures declined an average of 40.3¢ through the front six contracts during the same period.
Live Cattle futures closed mixed on Friday, down 3¢ to 28¢ in the front two contracts, then up an average of 21¢. Week to week, however, they were an average of $1.96 higher.
Negotiated cash fed cattle trade was limited on light demand through Friday afternoon, with too few transactions to trend accord to the agricultural Marketing Service.
For the week, live prices were $2 lower in the Southern Plains at $135/cwt., $1 lower in Nebraska at $139 and steady to $2 lower in the western Corn Belt at $140. Dressed prices were $1-$2 lower in Nebraska at $222 and steady to $5 lower in the western Corn Belt at $222.
Wholesale beef prices continued to gain last week. Choice boxed beef cutout value was $1.84 higher week to week on Friday at $267.26/cwt. Select was $3.52 higher at $250.02.
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Major U.S. financial indices ended with week on a slide Friday, after the May jobs report showed 390,000 jobs were added. Many analysts expected a lower number and now think the Federal Reserve will continue hiking interest rates aggressively as the labor market remains tight, increasing fears the economy will end up in a recession.
The Dow Jones Industrial Average closed 349 points lower. The S&P 500 closed 68 points lower. The NASDAQ was down 304 points.
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Although total red meat in cold storage at the end of April was the most in two years, stock levels were still 3% less than the five-year average, according to analysts with the Livestock Marketing Information Center (LMIC).
“Total red meat in cold storage has been rising since the start of the year,” say LMIC analysts, in the latest Livestock Monitor. “In April, nearly 1.1 billion lbs. of red meat were in cold storage, up more than 10% from the start of the year and 16% from last year. April marked the highest level in two years when total red meat in cold storage was almost 1.3 billion lbs.”
Higher than normal beef stocks drove increased levels of total red meat in freezers. In April, 531.7 million lbs. of beef were in cold storage, up 18.5% or 82.9 million lbs. from a year ago.
“The typical seasonal pattern for beef in cold storage is for levels to generally decline during the first part of the year before rising the second half of the year,” LMIC analysts say. “This year, beef in cold storage has stayed above 525 million lbs. for the first four months.”