Negotiated cash fed cattle trade was limited on light demand in all major cattle feeding regions through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, live prices were $1 higher in the Southern Plains at $143/cwt. and $1-$3 higher in Nebraska and the western Corn belt at $146-$148. Dressed prices were $2 higher at $230.
Choice Boxed beef cutout value $1.29 lower Friday afternoon at $246.07/cwt. Select was 86¢ lower at $216.13.
Cattle futures limped to a narrowly mixed close on Friday.
Feeder Cattle futures closed mixed from an average of 38¢ lower through May ’23, then up 13¢ to 38¢.
Live Cattle futures closed mixed, down 15¢ to up 28¢.
The strong U.S. dollar capped Grain and Soybean futures Friday.
Corn futures closed mixed, 4¢ to 8¢ higher through Jul ’24 then down 1¢.
Soybean futures closed 3¢ to 9¢ higher through Sep ’24 and then 3¢ lower.
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Major U.S. financial indices sank Friday with investors apparently viewing the strong as another reason for the Fed to keep aggressively shoving interest rates higher.
Total non-farm payroll employment increased by 263,000 in September, and the unemployment rate edged down to 3.5%, according to the U.S. Bureau of Labor Statistics.
In September, average hourly earnings for all employees on private non-farm payrolls rose by 10¢ to $32.46. Over the past 12 months, average hourly earnings have
increased by 5.0%.
The Dow Jones Industrial Average closed 630 points lower. The S&P 500 closed 105 points lower. The NASDAQ was down 421 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.50 to $4.19 higher higher though the front six contracts.
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“The lack of available grazing and a low hay supply is likely to bring cattle to market a few weeks early as many producers are facing conditions that may force them to begin feeding hay earlier than is typical,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “The price of freshly weaned calves has been declining the past several weeks and will likely continue to decline through the month of October. The driver of lower prices is not simply the seasonal tendency due to the seasonal increase in supply. Higher feed prices and increased concern of the general economy have many folks concerned about the consumers ability to purchase beef, which has resulted in a softening of price expectations for calves and feeder cattle moving through the spring months.”
Although declining cattle supplies ahead will support prices, Griffith explains continuing high feed costs and lower cash fed cattle prices than previously suggested by Cattle futures pose headwinds.
“If feed costs continue to maintain current price levels and finished cattle prices do not increase considerably then cattle feeders will be forced to continue leaning on lower feeder cattle prices,” Griffith says. “There should be some positive price movement closer to the end of the year, but prices are unlikely to make a large move through the month of October and early November.”