Cattle futures edged higher Friday, helped along by firm to stronger cash fed cattle prices and likely anticipation of a bullish Cattle on Feed report (see below).
Feeder Cattle futures closed an average of 54¢ higher.
Live Cattle futures closed an average of 44¢ higher.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand through Friday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some live sales in the western Corn Belt at $155/cwt.
The last established live prices for the week were steady to $1 higher in the Texas Panhandle at $150-$151, $1-$2 higher in Kansas at $151-$152, steady to $2 higher in Nebraska at $153-$155 and $2 higher in the western Corn Belt at $154-$155. Dressed prices were steady to $2 higher at $242.
Estimated total cattle slaughter last week was 674,000 head, which was 3,000 head more than the previous week, but 6,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 30.1 million head was 459,000 head more (+1.5%) than the same period last year. Estimated year-to-date beef production of 24.8 billion lbs. was 346.8 million lbs. more (+1.4%).
Choice Boxed beef cutout value was $2.23 lower Friday afternoon at $254.87/cwt. Select was $1.09 higher at $232.83/cwt.
Corn futures closed mixed, from 1¢ lower to 1¢ higher.
Soybean futures closed 10¢ to 11¢ higher through Aug’23, and then mostly fractionally higher to 4¢ higher.
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Major financial indices mostly paddled in place Friday.
The Dow Jones Industrial Average closed 199 points higher. The S&P 500 closed 18 points higher. The NASDAQ was up 1 point.
West Texas Intermediate Crude Oil futures (CME) closed 96¢ to $1.56 lower through the front six contracts.
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As many expected, the latest monthly Cattle on Feed report (feedlots with capacity of 1,000 head or more) was decidedly bullish, reflecting the turn toward tighter supplies.
October placements of 2.1 million head were 138,000 head fewer than a year earlier (-6.1%) and the least for the month since the data series began in 1996.
In terms of placement weights, 48% went on feed weighing 699 lbs. or less, 39% weighing 700-899 lbs. and 13% weighing 900 lbs. or more.
October marketings of 1.8 million head were 11,000 head more (0.6%) than the prior year.
Cattle on feed Nov. 1 of 11.7 million head were 242,000 head less (-2.0%) year over year.