Fed cattle prices moved lower at the end of the week as packers entered the new week with relatively light inventories, unless additional cattle are purchased over the weekend. According to The AG Center report, trade developed on Friday afternoon across all major regions at US$/cwt 256-257, down US$/cwt 1-2 from late the previous week and about US$/cwt 3 below the bulk of last week's transactions. Dressed cattle sales were reported at US$/cwt 405-408, mostly US$/cwt 407, down US$/cwt 1-3 week-on-week.
Corn prices remained closely linked to energy markets. Crude oil fell to multi-week lows, increasing expectations for lower gasoline prices and weaker ethanol demand. Combined with favorable crop conditions — 86% of corn planting completed without major issues — and forecasts for beneficial rainfall, the market environment has shifted toward a more bearish outlook for corn.
US cattle slaughter totaled 448,000 head last week, down 84,000 head from the previous week due to the holiday and 40,000 head below the same week last year.
According to The AG Center report, persistent negative margins at beef processing plants are creating an unsustainable operating environment. While lower fed cattle prices have provided some relief to packers, those margin pressures may begin spreading to feedyards. Retailers remain reluctant to promote beef at a loss and are increasingly featuring alternative proteins. Despite those challenges, fed cattle supplies are expected to remain tight, allowing cattle owners to retain leverage as the industry gradually transitions toward larger calf supplies in the coming year.
