Friday markets
USDA released its highly anticipated annual cattle inventory report today, showing U.S. cattle supplies shrunk another 1% over the past year.
Live cattle futures were higher, up 12 cents to $204.60 on the February contract and up 80 cents to $202.30 on the April contract.
There was some cash trade to round out the day, with about 8,000 head sold through the afternoon. Live steers sold from $204-210, and dressed steers sold from $325-330. Total cash trade for the week so far is about 45,000 head.
“Some more cash cattle trade could trickle in here and there as feedlot managers aim to clean up their showlists ahead of the week’s conclusion, but largely it’s looking like the week’s prices are set,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Slaughter for the day is estimated at 114,000 head. With tomorrow’s slaughter expected at 2,000 head, total slaughter for the week is projected at 600,000 head, on pace with a week earlier.
Boxed beef prices were higher on 90 loads. The Choice cutout gained 20 cents to close at $327.68, and the Select cutout gained $1.17 to close at $317.07.
USDA released its much-anticipated annual inventory report today. All cattle and calves in the U.S. as of Jan. 1 totaled 86.7 million head, down 1% from the year prior and in line with pre-report estimates.
All cows and heifers that calved totaled 37.2 million head, slightly below the 37.4 million head last year. Beef cows, at 27.9 million head, were down 1% from a year ago.
All heifers 500 lbs. and over totaled 18.2 million head, 1% below the 18.3 million head reported last year. Beef replacement heifers, at 4.67 million head, were down 1% from a year ago.
Steers weighing 500 lbs. and over totaled 15.8 million head, down 1% from 2024.
Bulls weighing 500 lbs. and over totaled 2.01 million head, down 1% from last year.
Calves under 500 lbs. totaled 13.5 million head, down slightly from last year.
Cattle and calves on feed totaled 14.3 million head, down 1% from 2024.
The 2024 calf crop was estimated at 33.5 million head, down slightly from the previous year.
“Based on the findings of this review, July 1, 2023, all cows and heifers that have calved decreased by 0.3 percent and 2023 calf crop decreased by 0.1 percent. January 1, 2024 all cows and heifers that have calved decreased by 0.6 percent,” according to USDA.
Feeder cattle
Feeder cattle futures were also higher. The March contract gained $2.52 to close at $275.72, and the April contract gained $2.80 to close at $275.12.
A reduction in the cow herd “should bode well for the feeder cattle complex as it shows that supplies will continue to be limited in the upcoming years,” Stewart said.
The CME Feeder Cattle Index gained $1.62 to close at $281.07.
Corn futures were lower, down 8 cents to $4.82 on the March contract and down 8 cents to $4.93 on the May contract. — Anna Miller, WLJ managing editor
