Grain futures were mixed Friday, continuing to adjust to the previous day’s bullish World Agricultural Supply and Demand Estimates.
Corn futures closed mostly 4¢ to 10¢ lower. Soybean futures closed 12¢ to 32¢ higher through Sep ‘23 and then fractionally higher to 1¢ higher, except for 63¢ higher in spot May.
Softer Corn prices helped Feeder Cattle futures regain a little lost ground Friday, closing an average of 84¢ higher (20¢ to $1.50 higher), except for 40¢ lower in the back contract.
Live Cattle futures closed an average of 39¢ lower, except for 42¢ higher in spot Jun, challenged by sluggish wholesale beef prices.
However, Choice Boxed beef cutout value was $1.75 higher Friday afternoon at $258.95/cwt. Select was 46¢ lower at $243.90. Week to week, Choice boxed beef cutout value was $4.51 higher but Select was $1.16 lower.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive with very light demand through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices were $140/cwt. in the Southern Plains, $144 in Nebraska and $144-$145 in the western Corn Belt. Dressed prices were $227-$230.
Estimated total cattle slaughter last week was the same as the prior week at 657,000 head. Year-to-date estimated total cattle slaughter of 12.3 million head was 71,000 head more than the previous year. Total estimated year-to-date beef production of 10.28 billion lbs. was 91.1 million lbs. more than the same time last year.
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At least for the day, investors on Wall Street seemed to think it was time to expand ownership in stocks, pushing major U.S. financial indices sharply higher.
The Dow Jones Industrial Average closed 466 points higher. The S&P 500 closed 93 points higher. The NASDAQ was up 434 points.
West Texas Intermediate Crude Oil futures on the CME closed $2.85 to $4.36 higher through the front six contracts, apparently buoyed by snug supplies and chatter about Shanghai reopening.
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Although western pasture and range conditions showed year-over-year improvement the first two week of this year’s growing season, nationwide conditions declined, say analysts with the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor.
“More than 50% of U.S. pasture and range is rated Poor to Very Poor compared to just under 50% last year. Western pastures are rated under 40% Poor and Very poor compared to more than 50% a year ago,” say LMIC analysts. “Great Plains and Southern Plains states are showing more severe conditions at this time. Great Plains pasture and range conditions are currently rated 60-55% Poor and Very Poor in the first two weeks of the (rating) year, needing additional feed to support normal stocking densities. The five-year average indicates that the start of year typically only shows about a 10% rating of Poor and Very Poor.”
LMIC analysts note the starkest deterioration is in the Southern Plains, where 57% and 50% of pasture and ranges was classified as Poor or Very Poor the first two weeks, compared to about 30% at the same time last year and about 15% for the five-year average.