Cattle Current Podcast—July 1, 2024

Negotiated cash fed cattle trade was moderate on moderate demand in Kansas through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices were unevenly steady at $190/cwt.

Elsewhere, trade was slow on light to moderate demand with some early FOB live trades in Nebraska and the western Corn Belt at $198, but too few to trend.

The previous week, FOB live prices were $189-$190/cwt. in the Texas Panhandle and mainly $197-$198 in Nebraska and the western Corn Belt. Dressed delivered prices the previous week were $310-$312 in Nebraska and $310 in the western Corn Belt with prices stretching as high as $314.

Estimated total cattle slaughter last week of 609,000 head was 11,000 head fewer than the previous week and 42,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 15.6 million head was 729,000 head fewer (-4.5%) than the same time last year. Estimated year-to-date beef production of 13.1 billion pounds was 209.7 million pounds less (-1.6%) year over year.

Cattle futures softened Friday with likely profit taking, month-end positioning and traders apparently leery to step out ahead of the week’s cash fed cattle trade.

Live Cattle futures closed an average of 88¢ lower. Week to week on Friday, Live Cattle futures closed an average of $3.14 higher in the front three contracts ($1.25 to $5.90 higher) as the expiring spot Jun closed some of the broad gap with cash. From there Live Cattle were an average of 75¢ lower.

Feeder Cattle futures closed an average of $1.72 lower on Fiday. Week to week they were an average of 60¢ lower, except for 92¢ higher in spot Aug.

Corn futures dove lower Friday with the bearish Acreage report (see below), applying pressure to Wheat and Soybeans, along with likely month-end position squaring.

Corn futures closed 10¢ to 16¢ lower through Jly ’25 and then mostly 1¢ to 4¢ lower. Week to week they were an average of 31’0¢ lower through the front six contracts, an average of 47’3¢ lower over the past two weeks.

KC HRW Wheat closed mostly 5¢ to 10¢ lower through May ’25 and then fractionally lower to 3¢ lower.

Soybean futures closed fractionally lower to 3¢ lower through near Nov  and then mostly 1¢ to 4¢ higher.