Cattle futures regained the previous session’s losses and more on Friday as traders retrenched for the beginning of a new month.
Live cattle futures were an average of $2.70 higher and Feeder Cattle futures were an average of $3.89 higher.
Week to week on Friday, Live Cattle futures closed an average of $2.61 higher and Feeder Cattle futures closed an average of $3.23 higher.
Negotiated cash fed cattle trade ranged from moderate on moderate demand in Nebraska to mostly inactive on moderate demand elsewhere through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 higher in the Southern Plains at $242.00/cwt. and steady in the North at $245. Dressed delivered prices were steady at mainly $385.
Choice boxed beef cutout value was $1.00 higher Friday afternoon at $415.41. Select was $4.16 higher at $390.00. Week to week on Friday, Choice boxed beef cutout value was $7.50 higher and Select was $6.34 higher.
Estimated total cattle slaughter last week of 565,000 head was 14,000 head more than the previous week but 52,000 head fewer than the same week last year. Estimated total year-to-date cattle slaughter of 19.5 million head was 1.4 million head fewer (-6.9%) than the same time last year. Estimated year-to-date beef production of 16.9 billion pounds was 707 million pounds less (-4.0%).
Grain and Soybean futures strengthened again Friday on likely month-end short covering.
Corn futures were 8¢ to 12¢ higher through Jly ’26 and then mostly 2¢ to 5¢ higher with short covering at the end of the month and ahead of the long weekend. Week to week on Friday, Corn futures were an average of 8’5¢ higher through the front six contracts, supported by increasing belief that this year’s crop may be record-large but smaller than what USDA projected in the August World Agricultural Supply and Demand Estimates.
Also on Friday, Kansas City Wheat futures closed mostly 3¢ to 4¢ higher. Soybean futures closed mostly 5¢ to 7¢ higher.
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Major U.S. financial indices closed lower Friday with likely week-end and month-end position squaring.
The Dow Jones Industrial Average closed 92 points lower. The S&P 500 closed 41 points lower. The NASDAQ was down 249 points.
West Texas Intermediate Crude Oil futures (CME) were 59¢ to 62¢ lower through the front six contracts.
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When cattle prices ultimately peak and then decline, and to what degree, is unknown, however, current dynamics suggest strong prices for two more years, according to Andrew P. Griffith, agricultural economist at the University of Tennessee (UT).
With that in mind, Griffith provides insight to bred heifer values for those considering herd expansion. Based on UT research several years ago, he says young cows bred approximately six months were generally valued at 2.5 times the value of a 550 pound freshly weaned heifer.
“This means young, bred cows (today) would be valued near $4,700 per head for large frame cows with a proven history of producing calves,” Griffith explains in his weekly market comments. “Bred heifers tend to be discounted slightly due to having a higher risk of calving difficulties, rejecting a calf, and ultimately no history of rearing a calf. Thus, either side of $4,000 seems to be the going rate for these animals.”