Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Friday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, live prices were $2 lower in the Southern Plains at $138/cwt., $4 lower in Nebraska at $140 and $2-$3 lower in the western Corn belt at $142. Dressed prices were $4 lower in Nebraska at $226. Dressed prices in the western Corn Belt the previous week were $227-$230.
Total estimated cattle slaughter last week was 23,000 head more than the previous week and 8,000 head more than the previous year at 680,000. Total estimated year-to-date cattle slaughter of 13.0 million head was 84,000 head more. Total estimated year-to-date beef production of 10.8 billion lbs. was 98.9 million lbs. more than last year.
Choice Boxed beef cutout value was 47¢ higher through Friday afternoon at $262.17/cwt. Select was $3.04 lower at $243.02.
Cattle futures closed lower again Friday with continued pressure from volatile outside markets, and perhaps with some prescient positioning ahead of the Cattle on Feed report (see below).
Feeder Cattle futures closed an average of 70¢ lower.
Live Cattle futures closed an average of 53¢ lower, except for 7¢ higher in spot Jun.
Corn futures closed mostly 1¢ to 4¢ lower.
Soybean futures closed mostly 8¢ to 9¢ higher.
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Major U.S. financial indices closed flat Friday, following a day of extreme volatility as investors try to stave off a bear market.
The Dow Jones Industrial Average closed 8 points higher. The S&P 500 closed fractionally higher. The NASDAQ was down 33 points.
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Markets will likely view Friday’s monthly Cattle on Feed report as bearish.
Feedlots with 1,000 head or more capacity placed 1.81 million head in April, which was 0.88% less than the previous year, but 3% more than estimates ahead of the report.
In terms of placement weights, 34.5% went on feed weighing 699 lbs. or less, 49.9% weighing 700-899 lbs. and 15.5% weighing 900 lbs. or more.
Marketings in April of 1.89 million head were 43,000 head fewer (-2.2%) than the previous year. That was about even with pre-report expectations.
There were 11.97 million head on feed May 1, which was 2% more than last year and about 2% more than expected. That’s the largest inventory for the date since the series began in 1996.