Cash fed cattle trade remained a no-go through Friday afternoon. Cattle feeder confidence and logic both suggested ultimate trade of steady money at worst, but perhaps $1-$2 higher.
Except for unchanged and 17¢ higher at the back of the board, Live Cattle futures closed an average of 76¢ higher (50¢ to 95¢ higher).
Feeder Cattle futures closed an average of 68¢ higher (32¢ to $1.12 higher).
Choice boxed beef cutout value was 3¢ lower Friday afternoon at $197.22/cwt. Select was $1.55 lower at $187.23.
******************************
Major U.S. financial indices closed narrowly mixed on Friday. Pressure included fewer new jobs than anticipated in the monthly employment report. There was 33,000 less non-farm employment in September than the previous months. Keep in mind that a couple of hurricanes affected the number.
The Dow Jones Industrial Average closed 1 points lower. The S&P 500 closed 2 points lower. The NASDAQ closed 4 points higher.
******************************
So far this year, U.S. beef exports are 10% more in volume compared to last year and 16% more in value at $4.65 billion. That’s through August, the most recent month for statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
For the month of August, volume was 5% more year to year at 112,069 metric tons (mt) and value was the second-highest on record at $679.1 million, up 20% from a year ago. The record high is $688.8 million established in October 2014.
“As we head into the final quarter, 2017 is shaping up as a very solid year for red meat exports but one in which the U.S. industry still faces significant challenges,” says USMEF CEO Philip Seng. “We have new pork plants coming on line and strong cattle-on-feed numbers, which sends a positive signal to our international customers about product availability. But the international markets are increasingly competitive, so we must continue to aggressively pursue new opportunities for U.S. red meat products in both our traditional mainstay destinations and in emerging markets.”
Export value per head of fed slaughter averaged $290.05 in August, up 13% from a year ago. Through August, per-head export value was up 9% to $275.81.
August beef exports to leading market Japan were 22% higher than a year ago at 31,001 mt, the most of the post-BSE era. Export value to Japan increased 35% and broke the $200 million mark ($200.05 million) for the first time since May 1996. For January through August, exports to Japan were up 23% percent in volume (209,502 mt) and 30% in value ($1.28 billion).
Keep in mind that Japan’s frozen beef safeguard was triggered in late July, increasing the duty on frozen beef imports from the U.S. and other suppliers without a trade agreement with Japan. The duty increased from 38.5% to 50%.
“The true impact of the higher duty rate will be revealed over the next few months, but August demand was not significantly affected,” according to USMEF.