Cattle futures closed lower Friday on the previous day’s softer USDA price outlook, likely profit taking, and no support from the previous day’s export news.
Net U.S. beef export sales for the week ending Oct. 5 were 9,000 metric tons, according to USDA’s weekly Export Sales report. The volume was 32% less than the previous week and 29% less than the prior four-week average. Increases were primarily for South Korea, Japan, Mexico, Taiwan and Canada.
Feeder Cattle futures closed an average of $1.80 lower.
Live Cattle futures closed an average of $1.11 lower (27¢ lower in spot Oct to $1.57 lower at the back).
Negotiated cash fed cattle trade ranged from slow on moderate demand to limited on moderate demand through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
For the week, based on the most recent established trade, FOB live prices were $1 higher in the Southern Plains at $182/cwt., $3 higher in Nebraska at $186 and $1-$3 higher in the western Corn Belt at $184-$186. Dressed delivered prices were $2-$4 higher in Nebraska at $292 and steady to $4 higher in the western Corn Belt at $290-$292.
Choice boxed beef cutout value was 39¢ lower Friday afternoon at $300.80/cwt. Select was 47¢ higher at $275.49/cwt.
Grain and Soybean futures eased lower Friday with likely profit taking.
Corn futures closed 1¢ to 3¢ lower.
Soybean futures closed mostly 7¢ to 11¢ lower.
KC HRW Wheat closed 4¢ to 7¢ lower.
Major U.S. financial indices closed mainly lower Friday with pressure from surging crude oil prices in response to fears about expanding unrest in the Middle East.
The Dow Jones Industrial Average closed 39 points higher. The S&P 500 closed 21 points lower. The NASDAQ was down 166 points.
West Texas Intermediate Crude Oil futures (CME) closed $3.70 to $4.78 higher through the front six contracts.
Grass season is coming to a close with mixed regional year-over year conditions, according to the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor. Nationwide, based on the latest ratings, LMIC analysts point out pasture and range rated as Poor or Very Poor ranged from 32-39%, compared to 40-plus a year ago at this time but higher than the typical ~30%.
“Range and pasture conditions for the western region of the U.S. are tracking similar to last year with ratings just above 30% rated as poor and very poor,” LMIC analysts say. “Condition ratings for the Great Plains region have been doing better than a year ago and the five-year average. The last several weeks have ranged from about 16% to 26% rated as poor and very poor, compared to over 50% at this time last year.”
Rounding out key cattle regions, they explain pasture conditions improved in the Southern Plains in recent weeks but are the worst for the year in the Southeast and Corn Belt region.
“Hay supplies across the U.S. have improved though, with the national yield and production numbers increasing,” LMIC analysts say. “Stocks may still be tight by historical standards, but for the most part it seems the U.S. was able to have not only a better grazing year, but also was able to rebuild hay inventory.”