Cattle futures closed lower Friday with the week’s lower cash fed cattle trade, sluggish wholesale beef prices, position squaring and wariness over the impact of U.S. tariffs set to begin this week.
Live Cattle futures were an average of $2.58 lower.
Feeder Cattle futures were an average of $2.45 lower.
Week to week on Friday, Live Cattle futures closed an average of 80¢ lower (10¢ to $1.55 lower), except for an average of 19¢ higher in the back three contracts. Feeder Cattle futures closed an average of 5.10 higher.
Negotiated cash fed cattle trade was moderate on light to moderate demand in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices were $2 lower at $197/cwt.
Elsewhere, trade was light on light to moderate demand. Although too few to trend, there were some FOB live trades in Nebraska and the western Corn Belt at $198. The previous week, prices were $199-$200 in Nebraska and $199 to $201 in the western Corn Belt.
Dressed delivered prices were $2 lower in Nebraska at $313. The previous week, prices were $315 in the western Corn Belt.
Choice boxed beef cutout value was 65¢ higher Friday afternoon at $311.83/cwt. Select was 8¢ lower at $302.05.
Grain futures sank Friday with apparent risk-of fund selling tied to looming U.S. tariffs and more bearish economic growth expectations, in tandem with week-end and month-end position squaring.
Corn futures closed 9¢ to 11¢ lower through old-crop contracts and then mostly 4¢ to 6¢ lower. Week to week on Friday, they were an average of 28¢ lower in the front six contracts.
Kansas City Wheat futures closed 7¢ to 13¢ lower on Friday. Soybean futures closed 8¢ to 12¢ lower.
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Major U.S. financial indices closed higher on a late-session surge, likely tied to month-end position squaring. Before the reversal, indices continued lower with negative economic news including a lower projection of domestic economic growth.
The Federal Reserve Bank of Atlanta’s GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2025 was -1.5% on Feb. 28, down from 2.3% on Feb. 19. The GDPNow is a running estimate of real GDP growth based on available economic data for the current measured quarter.
The Dow Jones Industrial Average closed 601 points higher. The S&P 500 closed 92 points higher. The NASDAQ was up 302 points.
West Texas Intermediate Crude Oil futures on the CME were 59¢ to 65¢ lower through the front six contracts.
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USDA raised expected fiscal year 2025 (FY25) exports of livestock, poultry, and dairy by $400 million to $39.7 billion in the latest quarterly Outlook for U.S. Agricultural Trade. The increase was based on more beef and dairy exports.
Projected beef exports were raised $300 million to $9.1 billion on higher volumes and increased unit values.
U.S. agricultural exports in FY25 were projected at $170.5 billion, up $500 million from the November forecast, as higher grain and feed exports offset reductions to the oilseed outlook.
FY 2025 U.S. grain and feed exports were forecast at $37.7 billion, up $1.2 billion from the November forecast. Higher exports of corn and feeds and fodders more than offset modestly lower wheat, sorghum, and rice exports. Corn exports were forecast at $13.8 billion, up $1.4 billion from November on higher volumes and unit values.
For broader context, U.S. GDP was forecast to grow 2.7% in Calendar Year (CY 2025), an upward revision from the previous Outlook. Growth in CY25 is expected to be driven by less restrictive monetary policy and robust consumer spending associated with relatively low unemployment and growing business investment.
World Gross Domestic Product (GDP) growth was projected to rise slightly to 3.3% in CY25.