Cattle futures closed sharply lower Friday, weighed down by a host of factors, including bearish outside market, week-end and month-end positioning, uncertainty over next week’s mid-term elections, weaker negotiated cash fed cattle prices and wholesale beef values, etc.
Live Cattle futures closed an average of $4.95 lower. Feeder Cattle futures closed an average of $10.01 lower. Week to week on Friday, Live Cattle futures closed an average of $8.03 lower and Feeder Cattle futures were an average of $14.32 lower.
Negotiated cash fed cattle trade was moderate on light to moderate demand in the South Central region through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices for the week were $225/cwt. with no previous-week comparison.
Trade in the North ranged from light on light demand in Nebraska to limited on light to moderate demand in the western Corn Belt.
Based on the last established trade, FOB live prices were $4-$4.50 lower in Nebraska at $224 and $3-$5 lower in the western Corn Belt at $222-$224.
Dressed delivered prices were $10 lower in Nebraska at mostly $348 and $5-$15 lower in the western Corn Belt at $350-$360.
Keep in mind, USDA began adding aggregated data to the 5-area direct report, beginning last Monday.
“It now includes all five regions (eight states) once again,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Some regions could not be reported due to confidentiality guidelines but that has been resolved by reporting Colorado, Kansas, and Texas/Oklahoma/New Mexico together. This allows for a more robust representation of negotiated cattle trade in the major feeding regions. Thus, data from more finished cattle transactions will be recorded to improve transparency as cattle feeders and packers negotiate trade each week. This should result in a larger head count since Colorado has not been reported since the last week of 2022.”
Choice boxed beef cutout value was $2.62 lower Friday afternoon at $364.66/cwt. Select was 35¢ higher at $351.98. Week to week on Friday, Choice was $1.13 lower and Select was 71¢ lower.
Estimated total cattle slaughter last week of 543,000 head was 3,000 head fewer than the previous week and 14,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 22.7 million head was 1.7 million head less (-7.1%) than the same week last year. Year-to-date estimated beef production of 20.3 billion pounds was 1 billion pounds less (-4.9%).
Grain and Soybean futures were mixed on Friday.
Corn futures closed mostly 2¢ to 4¢ lower.
Kansas City HRW Wheat futures closed fractionally lower to 1¢ lower through Sep ‘27 and then mostly 7¢ to 12¢ higher.
Soybean futures closed mostly fractionally mixed.
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