Cattle futures gained Friday as traders closed their book for the week and month. Support included firmer wholesale beef values and positive outside markets.
Live Cattle futures were an average of 96¢ higher.
Feeder Cattle futures closed an average of 87¢ higher.
Cattle futures also gained week to week. Live Cattle futures closed an average of $1.96 higher (47¢ higher at the back to $3.27 higher at the front). Feeder Cattle futures closed an average of $2.64 higher.
Negotiated cash fed cattle trade ranged from limited on light demand to inactive on very light demand with too few transactions to trend through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were steady in the Texas Panhandle at $183/cwt., $1 lower in Kansas at $182-$183, steady in Nebraska at $184 and $1-$3 lower in the western Corn Belt at $183-$185.
Dressed delivered prices were $3-$5 lower in Nebraska at $288-$292. Dressed delivered prices in the western Corn Belt the previous week were $293-$295.
Estimated total cattle slaughter last week of 611,000 head was 3,000 head more than the previous week but 20,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 20.9 million head was 910,000 head fewer (-4.2%) than the same time last year. Year-to-date estimated beef production of 17.6 billion pounds was 219.4 million pounds less (-1.2%).
Choice boxed beef cutout value was 68¢ higher Friday afternoon, at $309.34/cwt. Select was 37¢ lower at $295.82.
Grain and Soybean futures continued higher Friday.
Corn futures closed mostly 3¢ to 5¢ higher. Week to week on Friday, Corn futures closed an average of 8’6¢ higher. Kansas City Wheat futures closed 4¢ to 7¢ higher through Jly ‘25 on Friday and then mostly 2¢ higher. Soybean futures closed 6¢ to 8¢ higher.
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Major U.S. financial indices closed higher Friday, with support including the monthly personal consumption expenditures (PCE) index coming in line with expectations. The PCE rose 0.2% month to month in July and increased 2.5% year over year, according to the U.S. Bureau of Economic Analysis.
The Dow Jones Industrial Average closed 228 points higher. The S&P 500 closed 56 points higher. The NASDAQ was up 197 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.58 to $2.36 lower through the front six contracts.
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Current feedlot inventories mask the continued decline in the domestic feeder cattle inventory, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
This year’s projected total calf crop of 33.12 million head would be 3.22 million head less than the cyclical peak in 2018, according to Peel. He adds this year;s total would be the least since about 1941.
Although the recent USDA Cattle on feed report pegged the August inventory slightly higher year over year, Peel says the 12-month moving average of feedlot inventories peaked in September 2022.
“Total feedlot placements have decreased by 1.3% in the last 12 months compared to the previous 12-month period,” Peel says. “However, in the last year, average feedlot inventories have increased to 11.64 million head. Feedlot inventories have risen countercyclically due to continued feeding of heifers and increased days on feed. Feedlots have slowed the feedlot turnover rate enough to keep average monthly inventories higher despite fewer cattle entering feedlots.”