Cattle futures gained on Friday, helped by stronger cash fed cattle prices and continued weakness in Corn.
Live Cattle futures were an average of $1.46 higher. Feeder Cattle futures were an average of 73¢ higher, except for 5¢ lower in looming Nov.
Negotiated cash fed cattle trade was moderate on good demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
Based on the last established trade for the week, FOB live prices were mainly $5 higher in Nebraska at mostly $225/cwt. and mostly $2-$4 higher in the western Cron Belt at mainly $222-$224. Dressed delivered prices were mainly $5 higher at mostly $350.
The Texas Cattle Feeder Association reported its members trading fed steers $2.50 higher at $228.50 and fed heifers steady at $226.
Choice boxed beef cutout value was $1.67 lower Friday afternoon at $372.31/cwt. Select was 43¢ higher at $353.05.
Estimated total cattle slaughter last week of 553,000 head was 18,000 head more than the previous week but 13,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 21.6 million head was 1.7 million head fewer (-7.2%) than the same time last year. Year-to-date estimated beef production of 19.3 billion pounds was 1 billion pounds less (-5.1%).
Corn and Soybean futures were lower Friday with more harvest pressure.
Corn futures were mostly 2¢ to 4¢ lower. Kansas City HRW Wheat futures were 5¢ to 9¢ lower through Mar ‘28. Soybean futures were 1¢ to 3¢ lower through Aug ’27 and then mostly 1¢ higher.
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Major U.S. financial indices closed lower on Friday as the selloff continued in tech stocks and oil prices kept rising.
The Dow Jones Industrial Average closed 175 points lower. The S&P 500 closed 84 points lower. The NASDAQ was down 572 points.
West Texas Intermediate crude oil futures (CME) were $2.25 to $3.44 higher through the front six contracts.
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USDA’s Economic Research Service (ERS) increased projected feeder steer prices for the remainder of this year in the October Livestock, Dairy and Poultry Outlook.
Compared to the previous month, and based on recent price strength, forecast prices increased $2.31 in the third quarter to $352.31/cwt. and $8 in the fourth quarter to $343 for an annual average of $359.59, which was $2.58 higher.
Next year’s estimates were unchanged at $340 in the first and second quarters and $342.50 for the 2027 average price.
Prices are basis a Medium and Large #1 steer weighing 750-800 lbs., selling at Oklahoma National Stockyards.
As reported in Cattle Current last week, the ERS 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.
“Placements have followed the typical seasonal increase since June but remain at historically low levels for the summer months,” ERS analysts say. “These lower placements primarily reflect historically low cattle supplies and, to some extent, increased heifer retention as producers begin rebuilding their herds. Imports of Mexican cattle are expected to offset only part of this decline. The October Cattle on Feed report will provide a breakdown of steers and heifers on feed, offering additional insight into heifer retention.”
For perspective on resumed Mexican feeder cattle imports — so far through the port and Douglas, Ariz., which opened first, followed by the port at Santa Teresa, N.M. — ERS analysts note
In the first full week of operation at Santa Teresa, which opened Sept. 24, almost 2,000 head were processed. The same week about 7,500 head crossed at Douglas, which opened Aug. 24. During the same week two years earlier, ERS say about 5,400 crossed at Santa Teresa and 2,800 at Douglas.