Cattle futures sputtered Friday and ended the week lower with apparent squeamishness about the Cattle on Feed report that was published after the session and wonderment about the impact of next week’s resumption of Mexican feeder cattle imports through the port of entry at Santa Teresa, New Mexico Sept. 24. Turned out that the Cattle on Feed report was friendly (see below) and could support a bounce higher when the new week begins.
Live Cattle futures closed an average of 42¢ lower, except for an average of 24¢ higher in the front three contracts. Feeder Cattle futures closed an average of $1.31 lower. Week to week on Friday, Live Cattle futures closed an average of $5.90 lower and Feeder Cattle futures were an average of $10.57 lower.
Negotiated cash fed cattle trade was light on light to moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some FOB live trades in Nebraska at $222.50/cwt.
For the week, FOB live prices were $1 lower in Nebraska at $222-$223/cwt. and steady to $1 lower in the western Corn Belt at mostly $222. Dressed delivered prices were mostly steady at mainly $350.
Choice boxed beef cutout value was 21¢ lower Friday afternoon at $371.94/cwt. Select was $1.38 higher at $353.26. Week to week on Friday, Choice was $4.00 lower and Select was 13¢ higher.
Estimated total cattle slaughter last week of 529,000 head was 24,000 more than the previous week but 30,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 19.5 million head was 1.6 million head fewer (-7.5%) than the same time last year. Estimated year-to-date beef production of 17.4 billion pounds was 938.6 million pounds less (-5.1%).
Turning to row crops, Grain and Soybean futures were lower on Friday with likely positioning ahead of the weekend and trade negotiations between the U.S. and China.
Soybean futures closed 13¢ to 17¢ lower through Sep ’27 and then 9¢ to 12¢ lower.
Corn futures closed 2¢ to 3¢ lower.
Kansas City HRW Wheat futures closed mostly 4¢ to 10¢ lower.
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Major U.S. financial indices closed mixed on Friday, with pressure including Treasury Yield rates rising again.
The Dow Jones Industrial Average closed 95 points lower. The S&P 500 closed 12 points higher. The NASDAQ was up 104 points.
WTI were mixed through the front six contracts, from $1.61 lower to 63¢ higher.
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Markets will likely view Friday’s Cattle on Feed report as friendly, with fewer placements and a smaller inventory than expected.
Feedlots with 1,000 head or more capacity placed 1.6 million head in August, which was 163,000 head fewer (-9.2%) year over year and the fewest for the month since the data series began in 1996. Placements were 6.5% less than expectations ahead of the report.
In terms of placement weights, 35% went on feed weighing 699 lbs. or less, 46% weighing 700-899 lbs. and 19% weighing 900 lbs. or more.
Marketings in August of 1.5 million head were 52,000 head fewer (-3.3%). That was also the fewest for the month since the data series began in 1996 and slightly more than pre-report expectations.
Feedlot inventory Sept. 1 of 11.2 million head was 83,000 head more than the previous year (0.7%) but about 1% less than expectations ahead of the report.