Cattle futures continued closed lower Friday, but off session lows. Pressure included the week’s softer cash fed cattle prices, news about U.S. tariffs being rolled back on Brazilian beef imports and Tyson announcing closure of its packing plant in Lexington, Neb.
Live Cattle futures were an average of 33¢ lower. Feeder Cattle futures were an average of 99¢ lower.
Week to week on Friday, Live Cattle futures closed an average $2.90 lower, except for unchanged in the back contract. Feeder Cattle futures closed an average of $5.00 lower.
Negotiated cash fed cattle trade was mostly inactive on moderate demand in all major cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $4 lower in the Southern Plains at $224/cwt., mostly $7-$8 lower in Nebraska at mainly $218-$219 and $7-$12 in the western Corn Belt at mostly $215. Dressed delivered prices were $8-$10 lower in Nebraska at $340-$347 and mostly $3-$10 lower in the western Corn Belt at $340-$347.
Choice boxed beef cutout value was 20¢ higher Friday afternoon at $371.48/cwt. Select was $2.80higher at $356.98.
Estimated total cattle slaughter last week of 585,000 head was 9,000 head more than the previous week, but 50,000 head fewer (-7.9%) than the same week last year. Year-to-date estimated total cattle slaughter of 26.2 million head was 2 million head fewer (-7.1%) than the same time last year. Year-to-date estimated beef production of 22.9 billion pounds was 1 billion pounds less (-4.4%).
Grain and Soybean futures were mixed Friday.
Corn futures closed mostly fractionally lower to 1¢ lower with ongoing pressure from the surprisingly high yield estimate in the November WASDE. Corn futures an average of 7¢ lower through the front six contracts week to week on Friday.
On Friday, KC HRW Wheat futures were mostly 1¢ to 2¢ higher. Soybean futures were unchanged to 2¢ higher through Aug ’26 and then 1¢ to 2¢ lower with lingering pressure from profit taking and farmer selling.
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Major U.S. financial indices closed higher Friday, buoyed by increasing confidence the Fed will cut interest rates again this year.
The Dow Jones Industrial Average closed 493 points higher. The S&P 500 closed 64 points higher. The NASDAQ was up 195 points.
West Texas Intermediate Crude Oil futures (CME) were 70¢ to 94¢ lower through the front six contracts.
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Tight supplies and over-capacity finally caught up to one of the nation’s major beef packers.
Tyson Foods announced the closure of its beef processing plant in Lexington, Neb. as part of its plan to right size its beef business and position it for long-term success,” according to a company statement. No date was given for the closure.
Tyson also it will convert its Amarillo plant to one full-capacity shift and increase production at other company beef facilities.
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Markets will likely view Friday’s Cattle on Feed report as neutral to friendly with fewer placements than expected.
Feedlots with 1,000 head or more capacity placed 2.0 million head in October, which was 227,000 head fewer (-10.0%) than a year earlier. That was 2% less than estimates ahead of the report.
In terms of placement weights, feedlots placed 45% weighing 699 lbs. or less, 41% weighing 700-899 lbs. and 14% weighing 900 lbs. or more.
Marketings in October of 1.7 million head were 148,000 head fewer (-8.0%), in line with expectations.
Cattle on Feed Nov. 1 of 11.7 million head was 260,000 head fewer (-2.2%), year over year, which was also in line with expectations ahead of the report.
USDA also issued numbers for what would have been the October Cattle on Feed report, which was unpublished due to the government shutdown.
September feedlot placements of 2.0 million head were 6.3% less, September marketings of 1.6 million head were 3.9% less and the Oct. 1 on-feed inventory of 11.1 million head was 1.1% less.