Cash fed cattle trade was $2 higher in the Southern Plains through Friday afternoon at $108/cwt. Dressed trade was $2-$5 higher in the western Corn Belt at $170, with light live trade $1-$3 higher at $108. Elsewhere, there were too few transactions to trend.
Impending and eventual gains in cash trade helped lift Cattle futures higher again on Friday. The monthly Cattle on Feed report (see below) may apply pressure as this week begins.
Live Cattle futures closed 71¢ higher (7¢ to $1.47 higher).
Feeder Cattle futures closed an average of 50¢ higher (25¢ to 80¢ higher).
Choice boxed beef cutout value was 9¢ higher Friday afternoon at $191.60/cwt. Select was 32¢ higher at $188.73.
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Major U.S. financial indices closed narrowly mixed on Friday.
The Dow Jones Industrial Average closed 9 points lower. The S&P 500 closed 1 point higher. The NASDAQ closed 4 points higher.
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There’s no surprise in the fact that national cowherd expansion continues to yield more cattle to be placed on feed. However, August placements revealed in Friday’s monthly Cattle on Feed report were a surprise to many. The thinking ahead of the report was that so many cattle were pulled forward during earlier months, as feedlots turned cattle quicker, that placements for the month would be lower year over year; about 3% less, according to pre-report estimates.
In fact, August placements were 2.6% more than a year earlier at 1.93 million head. So, that was about 6% more than estimates. Placement weights were about evenly split between cattle weighing 799 lbs. and less (55%) and those weighing 800 lbs. and more (45%).
Marketings in August of 1.98 million head were 5.9% more than last year, which was in line with pre-report estimates.
The 10.5 million head on feed Sept. 1 were 3.6% more than a year earlier, which was about 1% more than expectations.