Cattle futures closed higher Friday with likely positioning ahead of Friday’s neutral to positive monthly Cattle on Feed report (see below).
Feeder Cattle futures closed an average of $1.02 higher. They were an average of $2.64 higher week to week.
Live Cattle futures closed an average of $1.16 higher on Friday and an average of $1.55 higher week to week.
Negotiated cash fed cattle trade ranged from limited on light demand to inactive on light demand through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, FOB live prices were $178/cwt. in all regions, which was $3 lower in the Texas Panhandle, mostly $2 lower in Kansas, $3.50 lower in Nebraska and steady to $2 lower in the western Corn Belt. Dressed delivered prices were $5 lower in Nebraska at $282 and $1-$5 lower in the western Corn Belt at $282.
Choice boxed beef cutout value was 85¢ lower Friday afternoon at $293.87/cwt. Select was $3.05 higher at $270.70/cwt.
Estimated total cattle slaughter last week of 636,000 head was 18,000 head more than the previous week but 36,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 28.7 million head was 1.4 million head fewer (-4.7%). Estimated year-to-date beef production of 23.5 billion lbs. was 1.3 billion lbs. less (-5.3%).
Turning to row crops, Corn futures closed mostly 4¢ to 7¢ lower. KC HRW Wheat futures closed mostly 8¢ to 10¢ lower. Soybean futures closed 15¢ to 20¢ lower through Aug ‘25 and then 7¢ to 12¢ lower.
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Major U.S. financial indices were little changed Friday.
The Dow Jones Industrial Average closed 1 point higher. The S&P 500 closed 5 points higher. The NASDAQ was up 11 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.61 to $2.99 higher through the front six contracts.
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Markets will likely view Friday’s Cattle on Feed report as neutral to positive, assuming traders factored in pre-report expectations.
For feedlots with 1,000 head more capacity, feedlot placements in October of 2.1 million head were 79,000 head more (+3.8%) than last year. That’s 2-3% less than various analyst expectations ahead of the report.
In terms of placement weights, 47% went on feed weighing 699 lbs. or less, 40% weighing 700-899 lbs. and 13% weighing 900 lbs. or more.
Marketings in October of 1.6 million head were 46,000 head fewer (-2.5%) than a year earlier, which was 0.5% less than pre-report estimates.
Cattle on feed Nov. 1 of 11.9 million head were 195,000 head more (+1.7%) than a year earlier, which was in line with expectations.