Cattle futures closed higher Friday and for the week with strength from tight numbers, higher cash feeder cattle prices and stronger wholesale beef values.
Live Cattle futures were an average of $1.28 higher, except for 20¢ lower in waning spot Oct. Feeder Cattle futures closed an average of $3.01 higher.
Week to week on Friday, Live Cattle futures closed an average of $6.47 higher, and Feeder Cattle futures were an average of $14.06 higher.
Negotiated cash fed cattle was light on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were mostly $2 lower in the western Corn Belt at mainly $220/cwt. Dressed delivered prices in Nebraska were steady to $5 lower at $345. The previous week, FOB live prices were mostly $222-$223 in Nebraska and dressed delivered prices were $350 in the western Corn Belt.
Choice boxed beef cutout value was $2.71 higher Friday afternoon at $378.83/cwt. Select was $3.66 higher at $355.76. Week to week on Friday, Choice was $6.89 higher and Select was $2.50 higher.
Estimated total cattle slaughter last week of 484,000 head was 45,000 head fewer than the previous week and 75,000 head fewer than the same week last year. Last week’s ICE raids disrupted production at some plants, magnifying recently slower packer production. Year-to-date estimated total cattle slaughter of 20 million head was 1.7 million head fewer (-7.7%) than the same time last year. Estimated year-to-date total beef production of 17.9 billion pounds was 1 billion pounds less (-5.3%).
Grain and Soybean futures were mixed Friday as traders awaited news about the trade talks between the U.S. and China.
Soybean futures were mostly fractionally mixed from 1¢ lower to 1¢ higher. Corn futures closed mostly fractionally higher to 1¢ higher. Kansas City HRW Wheat futures were 5¢ lower through May ‘28.
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Major U.S. financial indices closed higher Friday, supported by lower oil prices and new hopes for reopening the Strait of Hormuz.
The Dow Jones Industrial Average closed 478 points higher. The S&P 500 closed 39 points higher. The NASDAQ was up 129 points.
West Texas Intermediate crude oil futures (CME) closed 72¢ to $2.20 lower through the front six contracts.
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Some of the impact from last week’s U.S. Immigration and Customs Enforcement (ICE) raids in key cattle feeding and beef packing states showed up in weekly beef production, which was 8.5% lower week to week as some workers stayed home. Less visible were the impacts at feedlots challenged by similar worker attrition.
Late in the week, the Texas Cattle Feeders Association, Kansas Livestock Association and Oklahoma Cattlemen’s Association released a statement:
“Our organizations respect the responsibility of federal agencies to enforce the law. At the same time, cattle producers, feedyards, dairies, livestock markets, processors and other rural businesses depend on a stable workforce to care for animals, protect food safety and keep the supply chains operating. Sudden workforce disruptions can create immediate animal-welfare, operational and economic consequences that extend well beyond an individual business. These ICE operations are having a massive chilling effect on the legal, documented, skilled workers that put beef on the table and keep the cattle supply chain moving. Additionally, these types of disruptions will lead to higher beef prices for consumers.”
According to the statement, reported impacts include:
- Thousands of fed cattle slated for shipping to processors delayed, resulting in millions of dollars in lost revenue and additional costs.
- Workforce disruptions at numerous supply chain chokepoints, such as feedyards, dairies, processors, feed and grain companies, transportation hubs and community services.
“These disruptions come at a time of enhanced focus and pressure on the cattle and beef supply chain,” according to the statement. “They are a costly and unnecessary impact to cattle producers already suffering from unwelcome political interference to both the markets as well as the physical supply chain. Frustratingly, the harm these actions cause to cattle producers last for days and weeks after such operations conclude.”
The three cattlemen’s organizations urge federal officials to conduct enforcement actions in a lawful, orderly, and transparent manner; respect due process; and communicate clearly with affected employers and communities.