Cattle futures softened again Friday amid sharply lower outside markets, rising interest rates and perhaps some prescient defensiveness ahead of the monthly Cattle on Feed report.
Feeder Cattle futures closed an average of 61¢ lower, except for an average of 28¢ higher in two contracts.
Live Cattle futures closed an average of 89¢ lower.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to slow on light to moderate demand through Friday afternoon, according to the Agricultural Marketing Service.
Based on the last established trends, live prices for the week were $1 higher in the Southern Plains at $143/cwt., steady to $4 higher in the western Corn Belt at $148 and $1 higher in Nebraska at $144. Dressed prices were $2-$8 higher in the western Corn Belt at $228-$234 and $2-$5 higher in Nebraska at $228-$232.
Choice Boxed beef cutout value was 23¢ higher Friday afternoon at $248.63/cwt. Select was $2.80 lower at $219.31/cwt.
Corn and Soybean futures softened Friday with outside market concerns, including the impact the climbing U.S. dollar will have on exports.
Corn futures closed 10¢ to 13¢ lower.
Soybean futures closed 28¢ to 31¢ lower through Aug ‘23 and then 20¢ to 25¢ lower.
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Major U.S. financial indices closed sharply lower Friday as investors focused on climbing interest rates and recessionary fears.
The Dow Jones Industrial Average closed 468 points lower. The S&P 500 closed 64 points lower. The NASDAQ was down 198 points.
CME WTI Crude Oil futures closed $4.29 to $4.78 lower through the front six contracts.
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Feedlot placements were higher than expected again in August, according to the latest monthly Cattle on Feed report for feedlots with 1,000 head or more capacity. Placements in August of 2.11 million head were 9,000 head more year over year (+0.4%) but almost 2% more than pre-report expectations.
In terms of placement weights, 35% went on feed weighing 699 lbs. or less, 47% were 700-899 lbs. and 18% weighed 900 lbs. or more.
Marketings in August of 2.00 million head were 120,000 head more (+6.4%), which was in line with expectations.
Cattle on feed Sept 1 of 11.3. million head were 45,000 head more (+0.4%) than the previous year, which also mirrored expectations ahead of the report. It was the second largest inventory for the date since the data series began in 1996.