Feeder Cattle futures continued lower Friday, under pressure from positioning ahead of the monthly Cattle on Feed report (see below) and eroding outside markets. They were trending sharply lower on Monday
On Friday, Feeder Cattle futures closed an average of $2.48 lower.
Live Cattle futures closed an average of $1.05 lower (12¢ lower at the front to $1.62 lower at the back).
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.
Based on the latest established trade, the week’s FOB live prices were $2 higher in the Texas Panhandle at $185/cwt., $1-$2 higher in Kansas at $184-$185 and $1-$2 higher in Nebraska and the western Corn Belt at $186-$187. Dressed delivered prices were $2 higher in Nebraska at $294 and $2-$4 higher in the western Corn Belt at $294.
Choice boxed beef cutout value was $1.26 higher Friday afternoon at 305.38/cwt. Select was $1.22 higher at $278.70/cwt.
Total estimated cattle slaughter last week of 638,000 head was 21,000 head more than the previous week but 37,000 head fewer (-5.5%) than last year. Total estimated year-to-date cattle slaughter of 26.1 million head was 1.3 million head fewer (-4.6%) than the same time last year. Year-to-date estimated beef production of 21.4 billion pounds was 1.2 billion pounds less (-5.3%).
Corn futures mostly 4¢ to 9¢ lower.
Soybean futures closed 6¢ to 13¢ lower through Jly ‘24 and then mostly fractionally higher to 2¢ higher.
KC HRW Wheat closed mostly 4¢ lower.
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Major U.S. financial indices closed sharply lower Friday, once again bowing to rising U.S. Treasury yields.
The Dow Jones Industrial Average closed 286 points lower. The S&P 500 closed 53 points lower. The NASDAQ was down 202 points.
West Texas Intermediate Crude Oil futures (CME) closed 23¢ to 62¢ lower through the front six contracts.
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Markets viewed Friday’s monthly Cattle on Feed report as bearish, with prescient positioning ahead of the report and follow-through pressure at the outset Monday.
September placements in feedlots with 1,000 head or more capacity of 2.2million head were 6.1% more than last year and significantly more than expectations.
In terms of placement weights, 37% went on feed weighing 699 lbs. or less, 46% weighing 700-899 lbs. and 17% weighing 900 lbs. or more.
Marketings in September of 1.7 million head were 10.6% less than the previous year and less than expected.
On-feed inventory Oct. 1 of 11.6 million head were 0.6% more than last year — more than expected — and the second largest inventory for the date since the data series began in 1996.