Cattle futures extended gains Friday with support from higher wholesale beef prices and despite higher Corn futures.
Feeder Cattle futures closed an average of 61¢ higher (25¢ at the back to 75¢ higher).
Live Cattle futures closed an average of 92¢ higher (25¢ higher at the back to $1.75 higher at the front).
Choice Boxed beef cutout value was $1.35 higher Friday afternoon at $259.42/cwt. Select was $1.99 higher at $238.58/cwt.
Negotiated cash fed cattle trade was mostly inactive on light demand in all cattle feeding regions through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices were $1 lower in the Southern Plains at $141/cwt., $2 lower in Nebraska at $143 and $4 lower in the western Corn Belt at $143-$144. Dressed prices were $4 lower in Nebraska at $228 and $2-$4 lower in the western Corn Belt at $228-$232.
Estimated year-to-date total cattle slaughter Sept. 2 was 22.7 million head, which was 282,000 head more (+1.3%) than the same time last year. Estimated year-to-date beef production was 18.74 billion lbs., which was 192.1 million lbs. more (+1.0%) than a year earlier.
Corn and Soybean futures bounced back Friday with support including positive export announcements.
Corn futures closed mostly 6¢ to 7¢ higher. Soybean futures closed mostly 21¢ to 25¢ higher through Aug. 23 and then mostly 14¢ higher.
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Major U.S. financial indices closed lower Friday after early support from the anticipated bullish jobs report.
Total non-farm employment increased by 315,000 in August, according to the U.S. Bureau of Labor Statistics. That was slightly less than estimates ahead of the report. The nation’s unemployment rate edged higher to 3.7%.
Average hourly earnings for all employees on private non-farm payrolls increased 10¢ in August to $32.36.
The Dow Jones Industrial Average closed 337 points lower. The S&P 500 closed 42 points lower. The NASDAQ was down 154 points.
West Texas Intermediate Crude Oil futures on the CME closed 16¢ to 26¢ higher through the front six contracts.
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Walmart and Sustainable Beef LLC announced last week that Walmart signed an agreement to acquire a minority stake in Sustainable Beef LLC, a rancher-owned company based in North Platte, Neb. Walmart’s equity investment is part of a broader strategic partnership to source top-quality Angus beef from Sustainable Beef LLC’s new beef processing facility, according to a Walmart news release.
“We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner, said David Briggs, CEO of Sustainable Beef LLC. “During this journey we found that Sustainable Beef and Walmart aligned on continuing to improve how we care for our animals and crops and provide consumers the positive experience of enjoying quality beef.”
Walmart’s investment will help Sustainable Beef LLC open their beef processing facility in North Platte, Neb. The facility is expected to break ground next month and open by late 2024, creating more than 800 new jobs. As part of the investment, Walmart will also have representation on Sustainable Beef’s board.
“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products,” says Tyler Lehr, senior vice president of merchandising for deli services, meat and seafood, Walmart U.S. “We know Sustainable Beef LLC has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers. This investment provides greater visibility into the beef supply chain and complements Walmart’s regeneration commitment to improve grazing management.”