Live Cattle futures continued to grind higher, closing an average of 49¢ higher (5¢ higher at the front to 92¢ higher at the back), supported by stronger cash prices and wholesale beef values.
Feeder Cattle futures closed an average of 75¢ lower in light trade, pressured by the bounce higher in Corn futures.
Grain and Soybean futures closed higher Friday as traders appeared to add weather premium with the dry, hot outlook in the Corn Belt for the next couple of weeks.
Corn futures closed mostly 10¢ to 18¢ higher.
KC HRW Wheat closed 1¢ to 5¢ higher in the front five contracts and then 13¢ to 15¢ higher.
Soybean futures closed 10¢ to 17¢ higher.
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Negotiated cash fed cattle trade ranged from very limited on light demand to a standstill through Friday afternoon, with too few to trend, according to the Agricultural Marketing Service.
For the week, live prices were $1 higher in the Southern Plains at $171/cwt., $2-$4 higher in Nebraska at $180-$182 and $4-$5 higher in the western Corn Belt at $182. Dressed prices were $4-$5 higher in Nebraska at $285-$286 and $3-$5 higher in the western Corn Belt at $285.
Choice boxed beef cutout value was $3.99 higher Friday afternoon at $303.93/cwt. Select was 38¢ higher at $284.92/cwt.
Estimated total cattle slaughter last week of 625,000 head was 17,000 head fewer than the prior week and 16,000 head fewer than the same week last year. Estimated year-to-date cattle slaughter of 13.2 million head was 441,000 head less (-3.2%). Estimated year-to-date beef production of 10.8 billion pounds was 523.7 million pounds less (-4.6%).
U.S. beef exports appear to regaining some momentum. Net U.S. beef sales (2023) for the week ending May 18 totaled 18,300 metric tons. That was 5% more than the previous week and 15% more than the prior four-week average. Increases were primarily for Japan, South Korea, China, Mexico and Taiwan.
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Major U.S. financial indices closed higher Friday with renewed optimism surrounding debt ceiling talks. Tech stocks continued to add support.
The Dow Jones Industrial Average closed 328 points higher. The S&P 500 closed 54 points higher. The NASDAQ was up 277 points.
West Texas Intermediate Crude Oil futures (CME) closed 81¢ to 84¢ higher through the front six contracts.
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Fuel and fertilizer prices remain historically high but are lower year over year, according to analysts with the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor.
“Prices have been elevated for the better part of two years, and although they have been trending lower, they are still well above historic levels,” LMIC analysts say. “Anhydrous Ammonia prices started the year at $1,308.33 per ton, which was 12% below prices at the start of 2022. Through mid-May, Anhydrous Ammonia prices have fallen almost 17% to the most recent price reported of $1,089.58 per ton. Typically, Anhydrous Ammonia prices range from about $520 to $575 per ton during the first five months of the year.”
Likewise, based on USDA’s Illinois Production Cost Report, LMIC analysts offer other examples, compared to a year earlier (May 26): Diesel prices are 29% less at $3.27 per gallon; Liquid Nitrogen prices are 17% less at $535.75 per ton; Urea prices are 31% less at $653 per ton.
“Urea prices still need to move lower to get closer to more typical prices, which are usually around $400 per ton for this time of year,” according to LMIC analysts.