Cattle futures closed lower Friday as managed money appeared to exit positions ahead of the long weekend and in anticipation of bearish feedlot placements, which proved to be the case (see below).
Live Cattle futures closed an average of 67¢ lower, except for an average of 20¢ higher in the front two contracts. Feeder Cattle futures closed an average of $5.41 lower
Negotiated cash fed cattle trade was light on moderate demand in Kansas and Nebraska through Friday afternoon, according to the Agricultural Marketing Service. Trade was limited on moderate demand in the western Corn Belt and inactive on light demand in the Texas Panhandle. Overall, prices last week were steady to $2 lower.
FOB live prices were $260/cwt. in the Texas Panhandle, $259-$260 in Kansas, $258-$260 in Nebraska and $260 in the western Corn Belt. Dressed delivered prices were $408-$410 in Nebraska. Dressed delivered prices in the western Corn Belt the previous week were mostly $410.
Choice boxed beef cutout value was $1.21 lower Friday afternoon at $390.27/cwt. Select was 65¢ lower at $385.00. Week to week on Friday, Choice was $1.02 higher but Select was $4.25 lower.
Estimated total cattle slaughter last week of 528,000 head was 7,000 head fewer than the previous week and 48,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 10.7 million head was 1.1 million head fewer (-9.2%). Estimated year-to-date beef production of 9.6 billion pounds was 684.2 million pounds less (-6.6%).
Corn and Soybean futures closed higher Friday with short covering and positioning ahead of the holiday weekend.
Corn futures closed mostly 1¢ higher. Soybean futures closed 1¢ to 2¢ higher through Sep ‘27. Kansas City HRW Wheat futures closed 1¢ to 5¢ lower through Jly ‘27.
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Major U.S. financial indices closed higher Friday, supported by lower Treasury yield rates.
The Dow Jones Industrial Average closed 294 points higher. The S&P 500 closed 27 points higher. The NASDAQ was up 50 points.
West Texas Intermediate Crude Oil futures (CME) closed 19¢ to 25¢ higher through the front six contracts
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Markets will likely view Friday’s USDA Cattle on Feed Report as unfriendly with more placements and fewer marketings than anticipated ahead of the report.
Feedlots with 1,000 head or more capacity placed 1.7 million head in April, which was 89,000 head more (5.5%) year over year and 0.9% more than pre-report estimates. Although the specific numbers were in question, most anticipated an increase due to drought-driven earlier placements, as well as the fact this is the first year-over-year comparison without Mexican feeder cattle imports for both years.
In terms of placement weights, 34% went on feed weighing 699 lbs. or less, 50% weighing 700-899 lbs. and 16% weighing 900 lbs. or more.
Marketings in April of 1.6 million head were 183,000 head fewer (-10%) than the same time last year. Average estimates ahead of the report were for a decrease of 9.3%.
Cattle of feed May 1 of 11.6 million head were 208,000 more (1.8%) year over year, which was 0.2% more than estimates ahead of the report.