Cattle futures closed higher for a consecutive second session, and for the week, helped along by stronger outside markets and ongoing bullish fundamentals.
Live cattle futures were an average of $1.18 higher. Feeder Cattle futures were an average of $3.44 higher. Week to week on Friday, Live Cattle futures closed an average of $3.92 higher and Feeder Cattle futures closed an average of $6.64 higher.
Negotiated cash fed cattle trade ranged from mostly inactive on light to moderate demand in the Southern Plains to limited on moderate demand in the North, through Fridy afternoon, according to the Agricultural Marketing Service.
Although too few to trend, there were a few live FOB trades in Nebraska at $237/cwt. and a few in the western Corn Belt at $236.
For the week, FOB live prices were steady in Kansas at $240, mostly $2-$4 lower in Nebraska at $236-$238 and mostly $3-$4 lower in the western Corn Belt at $236-$237. Dressed delivered prices were $5-$8 lower in Nebraska at $370.
The previous week, FOB live prices were $240 in the Texas Panhandle and dressed delivered prices in the western Corn Belt were $375-$378.
Choice boxed beef cutout value was $3.76 lower Friday afternoon at $382.05/cwt. Select was $1.39 lower at $359.92.
Total estimated cattle slaughter last week of 552,000 head was 13,000 head fewer than the previous week and 62,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 21.1 million head was 1.6 million head fewer (-7.1%) than the same time last year. Year-to-date estimated total beef production of 18.3 billion pounds was 824.9 million pounds less (-4.3%).
Soybean futures led the grain complex lower Friday, with none of the hoped for mention in trade talks with China.
Toward the close and through away Jly contracts, Soybean futures were mostly 9¢ to 12¢ lower. Corn futures were mostly fractionally lower. Kansas City Wheat futures were 1¢ to 2¢ lower.
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Major U.S. financial indices closed higher again Friday, buoyed by the Fed interest rate cut and led by tech stocks.
The Dow Jones Industrial Average closed 172 points higher. The S&P 500 closed 32 points higher. The NASDAQ was up 160 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 87¢ to 91¢ lower through the front six contracts.
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Markets will likely view the latest Cattle on Feed report as neutral to favorable, with August placements on the lower side of expectations.
Feedlots with 1,000 head or more capacity placed 1.78 million head in August, which was 196,000 head fewer (-9.9%) than the same time a year earlier.
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 1.57 million head were 248,000 head fewer (-13.6%) year over year and the least for the month since the data series began in 1996.
\Cattle on feed Sept. 1 of 11.08 million head were 118,000 head fewer (-1.1%).