Friday markets
Cattle futures closed the week sharply higher on expectations for strong cash trade. USDA this afternoon also announced an $850 million investment in New World screwworm preventative measures.
Live cattle futures were higher, up $2.90 to $236.25 on the August contract and up $3.82 to $230.65 on the October contract.
“The live cattle complex is back to rallying as traders are hopeful that the fed cash cattle market will indeed see higher prices in both regions this week,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
USDA did not release cash trade for the day ahead of press time, but total cash trade through Thursday afternoon was about 61,000 head.
On Friday afternoon, USDA Secretary Brooke Rollins announced an $850 million investment in New World screwworm preventative measures. USDA planned to complete a sterile fly distribution facility in South Texas at the Moore Airfield Base by the end of the year. Now, $750 million in federal funding is planned for a sterile fly production facility at the airbase. The facility should be capable of producing 300 million flies per week.
The additional $100 million was allocated for technology to combat the spread of the disease.
“We will continue to take all the necessary steps across the entirety of the federal government, working alongside our partners at the state government, and in the local governments, to ensure that we keep this pest—this parasite, and others like it—out of our country that threaten our economy and our way of life,” Rollins said.
Slaughter for the day is estimated at 82,000 head. With tomorrow’s slaughter expected at 2,000 head, total slaughter for the week is projected at 530,000 head. Total slaughter for last week was about 536,000 head.
Boxed beef prices were higher on 104 loads. The Choice cutout gained $6.78 to close at $400.57, and the Select cutout gained $3.88 to close at $370.76.
Feeder cattle
“The feeder cattle complex was worried at the start of Friday’s complex that the day’s trade may be pressured like it was on Thursday,” Stewart said. “But thankfully, upon seeing the live cattle contracts trading higher, even the feeder cattle contracts are trading stronger into Friday’s noon hour.”
Feeder cattle futures were higher, up $5.75 to $346.15 on the August contract and up $6.32 to $347.35 on the September contract.
The CME Feeder Cattle Index gained $1.92 to close at $346.01.
Corn futures were higher, up 8 cents to $3.83 on the September contract and up 8 cents to $4.05 on the December contract. — Anna Miller Fortozo, WLJ managing editor
