Negotiated cash fed cattle prices extended gains last week, with live sales in the Southern Plains $4/cwt. higher in Kansas at $107 and $3-$4 higher in the Texas Panhandle at $106-$107. Dressed trade in Nebraska, and early sales in the western Corn Belt were $5 higher at $170.
Cattle futures softened Friday, amid sluggish trade and week-end position squaring.
Other than 55¢ higher in spot Oct, Live Cattle futures closed an average of 26¢ lower.
Feeder Cattle futures closed an average of 42¢ lower.
Wholesale beef values were steady to weak on light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 10¢ lower Friday afternoon at $211.96/cwt. Select was 29¢ lower at $186.92.
Corn futures closed 2¢ to 4¢ lower through Jul ’20 and then fractionally lower to 1¢ lower.
Soybean futures closed 3¢ to 4¢ higher through Aug. ’20 and then mostly fractionally higher to 1¢ higher.
Major U.S. financial indices closed higher again on Friday, buoyed by the bullish U.S. employment report.
Total nonfarm payroll employment increased by 136,000 in September, and the unemployment rate declined to 3.5%, according to the Employment Situation report from the U.S. Bureau of Labor Statistics.
Average hourly earning for all employees on private nonfarm payrolls was little changed at $28.09. Average hourly earnings increased 2.9% over the last 12 months.
The Dow Jones Industrial Average closed 372 points higher. The S&P 500 closed 41 points higher. The NASDAQ was up 110 points.
Federally inspected beef production slowed in September, down 1.9% from the previous year, according to Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. He explains declining beef production was mainly due to lighter steer and heifer carcasses, along with more cows and heifers in the harvest mix.
“Cattle slaughter the first nine months of 2019 exceeded 24.6 million head which is 1.4% greater than 2018. Alternatively, September cattle slaughter compared to a year ago was down 0.6%,” Griffith says. “If beef production keeps pace in the fourth quarter then total 2019 federally inspected beef production will exceed 26.6 billion lbs. If slaughter maintains pace in the fourth quarter then federally inspected cattle slaughter will be close to 32.9 million head. The beef cutout will come under seasonal pressure the next couple of months and strong beef production will only aid that pressure.”