Cattle futures rallied on Friday as Corn futures tanked on USDA’s latest production estimates (see below).
Live Cattle futures closed an average of $2.73 higher. Feeder Cattle futures were an average of $7.09 higher.
Week to week on Friday, Feeder Cattle futures closed an average of $10.29 higher and Live Cattle futures closed an average of $5.01 higher.
Negotiated cash fed cattle trade was light on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were steady to $2 higher in Nebraska at mostly $222/cwt. and steady to $2 lower in the western Corn belt at $218-$220. Dressed delivered prices were steady in Nebraska at $345 and steady to $5 lower in the western Corn Belt at mostly $345. The Texas Cattle Feeders Association reported its members trading fed cattle steady at $226.
Choice boxed beef cutout value was $1.50 lower Friday afternoon at $373.35/cwt. Select was $2.57 higher at $354.30. Week to week on Friday, Choice was 84¢ lower and Select was 19¢ lower.
Estimated total cattle slaughter last week of 531,000 head was 17,000 head fewer than the previous week and 20,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 21.1 million head was 1.7 million head fewer (-7.4%) than the same time last year. Estimated year-to-date beef production of 18.8 billion pounds was 1 billion pounds less (-5.2%).
Corn futures led the grain complex lower Friday, weighed down by the surprising projected production increase in the latest WASDE.
Corn futures closed mostly 19¢ to 21¢ lower through near Jly and then mostly 4¢ to 8¢ lower.
Kansas City HRW Wheat futures closed 10¢ to 17¢ lower through away Dec.
Soybean futures closed mostly 4¢ to 5¢ higher.
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Major U.S. financial indices closed higher Friday, buoyed by tech stocks and news reports that Russia will provide diesel supplies to the U.S. and global market.
The Dow Jones Industrial Average closed 423 points higher. The S&P 500 closed 46 points higher. The NASDAQ was up 172 points.
West Texas Intermediate crude oil futures (CME) were 4¢ to 36¢ higher through the front six contracts.
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USDA’s Economic Research Service left projected five-area direct fed steer prices virtually unchanged, compared to last month, in the October World Agricultural Supply and Demand Estimates.
The fourth-quarter price average was forecast at $225/cwt. with an average annual price for this year of $237.56. Prices for next year were projected at $235 in the first and second quarters, and $240 in the third quarter, for an annual average 2027 price of $238.
Beef production for this year was projected 75 million pounds less (-0.3%) than last month at 24.8 billion pounds. That would be 1.2 billion pounds less than last year (-4.6%) but 127 million pounds more (0.5%) than next year’s estimated production of 24.7 billion pounds.
Among other WASDE highlights…
Corn
The 2026/27 U.S. corn outlook was for larger supplies, exports, domestic use and ending stocks.
Projected corn production increased 234 million bushels to 16.0 billion on a 2.7-bushel increase in yield to 181.2 bushels per acre. Harvested area for grain was unchanged at 88.5 million acres. With supply increased more than use, ending stocks rose by 282 million bushels to 1.8 billion. The season-average corn price received by producers was lowered 10¢ per bushel to $4.70.
Soybeans
Soybean production for 2026/27 was forecast at 4.56 billion bushels, up 27 million on higher yields. The soybean yield was projected at 53.1 bushels per acre, up 0.3 bushels from the September forecast. Harvested area was unchanged at 85.9 million acres. Soybean supplies were raised 17 million bushels to 4.90 billion on higher production partly offset by lower beginning stocks. Ending stocks increased 5 million bushels to 315 million.
Prices were unchanged. The U.S. season-average soybean price was forecast at $12.00 per bushel. Soybean meal and oil prices were projected at $340 per short ton and 70¢ per pound, respectively.
Wheat
The outlook for 2026/27 U.S. wheat was for increased supplies and domestic use, reduced exports and greater ending stocks. Supplies were raised by 8 million bushels on higher imports and production. The NASS Small Grains Annual Summary estimated wheat production slightly greater at 1,534 million bushels on an increased yield more than offsetting reduced harvested area. Despite the increase, this remains the smallest U.S. wheat production since 1970. Projected all wheat ending stocks increased by 23 million bushels to 740 million, still 20% less than last year. The season-average farm price was lowered 10¢ per bushel to $6.30 on increased stocks, NASS prices reported to date, and expectations for futures and cash prices for the remainder of the marketing year.