Cattle futures mostly firmed on Friday.
Live Cattle futures closed an average of 92¢ higher, except for 25¢ lower and unchanged in the front two contracts.
Feeder Cattle futures closed an average of $1.68 higher.
Week to week on Friday, Live Cattle futures closed mixed, from an average of $1.12 lower in the front four contracts to an average of 72¢ higher. Feeder Cattle futures closed an average of $4.65 higher (see below).
Negotiated cash fed cattle trade ranged from inactive on light demand in the Texas Panhandle to light on moderate demand in the North, through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $3 lower in the Texas Panhandle at $237/cwt., $3-$5 lower in Kansas, at $235-$237, $3-$4 lower in Nebraska at $232-$235 and $4-$5 lower in the western Corn Belt at mostly $232. Dressed delivered prices were $5 lower in Nebraska at $365 and $3-$11 lower in the western Corn Belt at $365.
Choice boxed beef cutout value was 54¢ lower Friday afternoon at $371.43/cwt. Select was $1.01 lower at $352.44.
Grain futures closed lower Friday. Corn futures closed 1¢ to 3¢ lower. KC HRW Wheat closed 6¢ to 7¢ lower. However, Soybean futures closed 1¢ to 2¢ higher.
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Major U.S. financial indices closed higher Friday, buoyed by the August Personal Consumption Expenditures Price Index that was line with expectations. Excluding food and energy, it was 2.9% higher year over year on a seasonally adjusted basis, according to the U.S. Bureau of Economic Analysis.
The Dow Jones Industrial Average closed 299 points higher. The S&P 500 closed 38 points higher. The NASDAQ was up 99 points.
West Texas Intermediate Crude Oil futures (CME) were 64¢ to 74¢ higher through the front six contracts.
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Weekly gains in Feeder Cattle futures were supported by last Monday’s rally, which was tied to news of New World screwworm being confirmed just 70 miles south of the U.S. border, likely quashing resumption of Mexican cattle imports to the United States for a longer period. Support also included the previous week’s monthly Cattle on Feed report with placements on the low side of expectations. Arguably, comments from USDA suggesting imminent government plans to incentivize beef cow herd expansion added lift and uncertainty. Various rumors swirled about direct payments to producers for heifer retention and the like.
U.S. Secretary of Agriculture, Brooke Rollins, clarified USDA’s position at Thursday’s Agriculture Outlook Forum in Kansas City.
“We have no current plans to offer payment to beef producers. We see how the government getting involved can completely distort markets. No plan is even under consideration to insert ourselves through payments into the beef cattle industry,” Rollins explained. “But our plan will focus on opening up more working lands, expanding our risk mitigation tools for our beef cattle industry, and hopefully inspiring our next generation of farmers who hold this great nation in their hands.” She added details of the plan will be announced in mid-October.