Friday markets
USDA released its long-awaited biannual inventory report today, reporting another round of decreased numbers.
Live cattle futures closed mixed, up 35 cents on the February contract to $235.85 and down 47 cents on the April contract to $236.80.
“It has been exciting to see some stronger trade develop in the fed cash cattle market, but unfortunately with traders knowing the big report is set to be released this afternoon, the strong developments in the cash market seem to be overlooked,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
The bulk of cash trade took place today. About 54,000 head sold through the afternoon, averaging $239.67 live and $376.76 dressed. Total cash trade for the week up to this point was about 65,000 head.
Total slaughter for the day is estimated at 93,000 head, compared to 84,000 head a week earlier. With tomorrow’s slaughter anticipated at just 2,000 head, total slaughter for the week is projected at 531,000 head, compared to 535,000 head a week earlier.
Boxed beef prices were mixed on 95 loads. The Choice cutout lost $2.10 to close at $365.56, and the Select cutout gained $1.22 to close at $361.94.
USDA’s long-anticipated biannual Cattle inventory report was released this afternoon. The report noted that all cattle and calves in the U.S. as of Jan. 1 totaled 86.2 million head, slightly below the 86.5 million head reported last year.
Beef cows, at 27.6 million head, were down 1% from a year ago. Beef replacement heifers, at 4.71 million head, were up 1% from a year ago.
Steers weighing 500 lbs. and over totaled 15.6 million head, down 1% from 2025. Bulls weighing 500 lbs. and over totaled 2.01 million head, up slightly from last year. Calves under 500 lbs. totaled 13.3 million head, down slightly from 2025.
Cattle and calves on feed totaled 13.8 million head, down 3% from last year. The combined total of calves under 500 lbs. and other heifers and steers over 500 lbs. (outside of feedlots), at 24.5 million head, was 1% above January 2025.
The 2025 calf crop was estimated at 32.9 million head, down 2% from the previous year’s calf crop.
Regarding previous report revisions, based on the findings of this review, the 2024 calf crop decreased by 0.3%. For Jan. 1, 2025, all cattle and calves decreased by 0.2% and all cows and heifers that have calved increased by 0.2%.
Feeder cattle
Feeder cattle futures sunk lower. The March contract lost nearly $5 to close at $360.27, and the April contract also lost nearly $5 to close at $358.27.
“There’s a cloud of uncertainty that’s seemed to overcome the entire marketplace, and currently seems to be ensuing the most havoc on the feeder cattle contracts,” Stewart said.
The CME Feeder Cattle Index gained $2.70 to close at $366.69.
Corn futures closed slightly lower, down 2 cents on the March contract to $4.28 and down 3 cents on the May contract to $4.35. — Anna Miller Fortozo, WLJ managing editor
