Negotiated cash fed cattle trade was slow on light demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 higher in the Southern Plains at $185/cwt., $1.50-$2.00 higher in Nebraska at $185-$186 and $2 higher in the western Corn Belt at $185-$186. Dressed delivered prices were $2-$8 higher in Nebraska at $292-$300 and $2 higher in the western Corn Belt at $292.
Estimated total cattle slaughter last week of 583,000 head was 16,000 head fewer than the previous week and 48,000 head fewer than the same week last year. Year-to-date estimated cattle slaughter of 5.9 million head was 349,000 head fewer (-5.5%) than the same time last year. Year-to-date estimated beef production of 4.9 billion pounds was 231.3 million pounds less (-4.5%).
Choice boxed beef cutout value was 43¢ higher Friday afternoon at $307.04/cwt. Select was $1.17 higher at $297.43/cwt.
Cattle futures closed lower Friday despite the week’s higher cash trade and the supportive outlook in the monthly World Agricultural Supply and Demand Estimates (see below).
Live Cattle futures closed an average of 83¢ lower.
Feeder Cattle futures closed an average of $1.33 lower (62¢ to $2.20 lower).
Grain and Soybean futures closed higher with likely short covering despite neutral to bearish World Agricultural Supply and Demand Estimates.
Corn futures closed 2¢ to 3¢ higher.
KC HRW Wheat futures closed 10¢ to 14¢ higher.
Soybean futures closed 16¢ to 19¢ higher.
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Major U.S. financial indices closed lower Friday, led by tech stocks and with mixed economic data.
Total non-farm payroll employment rose by 275,000 in February, according to the U.S. Bureau of Labor Statistics, which was more than expected. However, the unemployment rate increased to 3.9%.
In February, average hourly earnings for all employees on private non-farm payrolls increased 5¢ to $34.57.
The Dow Jones Industrial Average closed 68 points lower. The S&P 500 closed 33 points lower. The NASDAQ was down 188 points.
West Texas Intermediate Crude Oil futures (CME) closed 61¢ to 92¢ lower through the front six contracts.
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USDA’s Economic Research Service (ERS) increased the forecast weighted average five-area direct fed cattle price for the remainder of this year, in the March World Agricultural Supply and Demand Estimates.
Compared to the previous month, ERS increased projected prices $3 in the first quarter to $179/cwt., $3 in the second quarter to $183, $2 in the third quarter to $182 and $2 in the fourth quarter to $186. ERS increased the forecast annual average price $3 to $183. Prices were forecast higher on recent prices and firm demand for fed cattle.
Beef production was projected 140 million pounds more than the previous month at 26.3 billion pounds. If so, it would be 638 million pounds less (-2.4%) than last year. Forecast production was raised with higher expected slaughter for the remainder of the year offsetting lower expected production in the first quarter.