Friday markets
USDA released its latest Cattle on Feed report today, which showed a steep decline in placements in February. Cash trade soared higher over the day, finding $5-7 gains over last week.
Live cattle futures were lower over the day. The April contract lost $1.52 to close at $206.95, and the June contract lost $2.25 to close at $202.77.
There was substantial cash trade through the afternoon, with about 47,000 head traded. Live steers sold from $209-215, and dressed steers sold from $330-340.
“Regardless of what the Cattle on Feed report shows, one could argue that the rally in this week’s fed cash cattle market will overpower whatever the Cattle on Feed report details,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“It’s rather incredible that on a week when throughput has been reduced because of weather conditions, that packers are still willing to advance the cash market $3 to $7 higher to ensure they have enough supply moving forward,” Stewart added. “Well done feedlot managers, well done!”
Slaughter for the day is estimated at 100,000 head. With tomorrow’s slaughter projected at 20,000 head, total slaughter for the week is expected at 560,000 head, compared to 584,000 head a week earlier.
Boxed beef prices were mixed on 124 loads. The Choice cutout lost $2.61 to close at $325.45, and the Select cutout gained 26 cents to close at $309.62.
USDA released its latest Cattle on Feed report for cattle and calves on feed as of March 1. Total inventory was 2% lower than last year at 11.6 million head. Placements were 18% lower, and marketings were 9% lower. Other disappearance totaled 7% more than 2024.
Feeder cattle
Feeder cattle futures were also lower. The March contract lost $1.87 to close at $286.47, and the April contract lost $3.47 to close at $284.97.
“Even though fed cash cattle prices are trading higher, traders are reluctant to advance the feeder cattle complex without the support of the live cattle contracts,” Stewart said.
The CME Feeder Cattle Index gained $1.29 to close at $285.94.
Corn futures were lower, down about 5 cents to $4.64 on the May contract and down 4 cents to $4.71 on the July contract. — Anna Miller, WLJ managing editor
