Cattle futures decline amid softening cash trades

Cattle futures declined on Friday as cash trades remained steady to lower. In northern cash markets, live cattle traded at approximately $220 per hundredweight, a decrease of about $2 from the previous week. However, southern markets in Oklahoma and Texas saw higher prices of $225 per hundredweight, prompting some operators to move animals south to capture the premium.

Despite pressure in the corn market, which saw futures dip toward a six-week low following a larger-than-expected USDA estimate of US corn stocks, the livestock complex did not receive significant support. Meatpacking operations showed signs of recovery from previous disruptions caused by immigration crackdowns, with slaughter numbers rising to an estimated 100,000 cattle on Friday compared to 87,000 the prior week.

Financial performance for meatpackers saw a decline, with profits dropping to $69.35 per head of cattle on Friday, down from $126.45 on Thursday. In other livestock sectors, December lean hog futures rose, while November feeder cattle and December live cattle settled lower.