Negotiated cash fed cattle trade was moderate on moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $1 higher in the Southern Plains at $186/cwt., $2.00 higher in Nebraska at $187-$188 and $3 higher in the western Corn belt at $188-$189. Dressed delivered prices were mostly $6 higher at $298.
Choice boxed beef cutout value was $1.12 higher Friday afternoon at $311.90/cwt. Select was 71¢ higher at $302.40/cwt.
Total estimated cattle slaughter of 601,000 head last week was 18,000 head more than the previous week but 27,000 head fewer than the same week last year. Year-to-date estimated cattle slaughter of 6.5 million head was 381,000 head fewer (-5.5%) than the same time last year. Year-to-date estimated beef production of 5.5 billion pounds was 244.1 million pounds less (-4.3%).
Strong cash fed cattle prices and supportive wholesale beef values helped Cattle futures close mostly higher Friday.
Live Cattle futures closed an average of 33¢ higher.
Feeder Cattle futures closed an average of 92¢ higher (27¢ to $1.80 higher), except for an average of 46¢ lower in the back two contracts.
Corn futures closed 2¢ to 3¢ higher.
KC HRW Wheat futures closed 5¢ to 8¢ lower.
Soybean futures closed 2¢ to 3¢ higher.
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Major U.S. financial indices closed lower Friday with the week’s bearishness surrounding sticky inflation.
The Dow Jones Industrial Average closed 190 points lower. The S&P 500 closed 33 points lower. The NASDAQ was down 155 points lower.
West Texas Intermediate Crude Oil futures (CME) closed mixed, from 22¢ lower to 14¢ higher through the front six contracts.
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Current retail beef prices and their premium to competing proteins underscore beef demand strength.
The Choice beef retail price was $8.08 per pounds in February, about the same as the previous month but 49¢ per pounds more (6.5%) year over year, according to the Livestock Marketing Information Center, in the latest Livestock Monitor.
“The all-fresh retail beef price was $7.83 per pound, a marginal increase from last month and an 8.3% increase ($0.60 per pound) increase over last year,” say LMIC analysts. “Ground beef was $5.13 per pound, up 7.4% from last year. Chucks and rounds posted increases of 10.2% and 7.6%, respectively, over last year to $7.51 and $6.71 per pound. Steaks posted a record high of $11.72 per pound, up 13.9% ($1.43 per pound) from last year.”
On the other side of the fence, retail pork prices were down slightly.
“The February retail pork price was $4.76 per pound, down less than 1% from the previous month and the previous year,” according to LMIC analysts. “Over the last 12 months, the retail pork price has ranged from $4.68 to $5.04 per pound with an average of about $4.80 per pound.”