Cattle futures closed lower Friday, with likely positioning ahead of what turned out to be a bearish monthly Cattle on Feed report (see below).
Live Cattle closed an average of $1.63 lower (87¢ to $2.00 lower).
Feeder Cattle futures closed an average of $3.24 lower (92¢ to $4.30 lower).
Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 higher in the Southern Plains at $188/cwt., $2-$3 higher in Nebraska at $190 (a few up to $191) and $2-$3 higher in the western Corn belt at $190-$191 (a few up to $191.50). Dressed delivered prices were $2-$7 higher in Nebraska at $302 and $4 higher in the western Corn Belt at $302.
Choice boxed beef cutout value was $3.01 lower Friday afternoon at $310.72/cwt. Select was $2.26 lower at $301.47/cwt. Week to week, Choice was $1.18 lower and Select was 93¢ lower.
Estimated total cattle slaughter last week of 598,000 head was 3,000 head less than the previous week but 30,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 7.1 million head was 410,000 head fewer (-5.4%) than the same time a year earlier. Estimated beef production of 6.0 billion pounds was 250.7 million pounds less (-4.0%).
Corn futures closed mostly fractionally lower to 1¢ lower.
KC HRW Wheat futures closed mostly 8¢ higher.
Soybean futures closed 16¢ to 20¢ lower, with likely profit taking.
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Major U.S. financial indices closed mainly lower Friday with likely profit taking from the week’s strong gains.
The Dow Jones Industrial Average closed 305 points lower. The S&P 500 closed 7 points lower. The NASDAQ was up 26 points.
Week to week, the Dow gained 1,761 points. The S&P 500 was up 177 points and the tech-heavy NASDAQ was up 455 points.
West Texas Intermediate Crude Oil futures (CME) closed 44¢ to 54¢ lower through the front six contracts.
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Traders will likely view Friday’s monthly Cattle on Feed report as bearish with more feedlot placements than expected.
Feedlots with 1,000 head or more capacity placed 1.9 million head in February which was 9.7% more (+160,000 head) year over year and 3.4% more than expectations ahead of the report. Placements were the highest for the month since the series began in 1996.
In terms of placement weights, 36% weighed 699 lbs. or less, 53% weighed 700-899 lbs. and 11% weighed 900 lbs. or more.
Marketings in February of 1.8 million head were 3.4% more (+59,000 head), which was in line with expectations.
Cattle on feed March 1 of 11.8 million head were 1.3% more (+153,000 head) than a year earlier, also in line with pre-report expectations.