Cattle futures—especially Live Cattle—took another step lower on Monday, with technical selling, last week’s lower cash fed cattle prices and early reports of fed cattle trading for lower money on Monday.
Except for 25¢ lower in the back contract, Live Cattle futures closed an average of $1.17 lower (80¢ to $2.02 lower).
Feeder Cattle futures closed an average of 40¢ lower.
Choice boxed beef cutout value was 69¢ higher on Monday afternoon at $210.20/cwt. Select was $1.05 higher at $203.37.
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Major U.S. financial indices closed little changed on Monday, at historically high levels and amid general overall optimism stemming from the cut in the corporate tax rate.
The Dow Jones Industrial Average closed 12 points lower. The S&P 500 closed 4 points higher. The NASDAQ closed 20 points higher.
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U.S. beef exports continued their steamy pace in November, according to export results released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Although U.S. beef exports in November were 3% less than the prior year in terms of volume, value was 8% more at $666.4 million. For January through November, volume of beef exports was 7% more than the same period a year earlier and value was up 15% at $6.6 billion, slightly more than the record pace established in 2014.
November beef export value averaged $306.63 per head of fed slaughter, up 4% from a year ago and the highest in nearly three years. January-November export value averaged $282.34 per head, up 9%.
Japan continued to be the pacesetter for U.S. beef exports in November, with volume increasing 5% year over year and value up 6% to $159.2 million. Through November, the value of U.S. beef exports to Japan was 27% more at $1.75 billion.
November exports to China (655 mt) were the largest since the mid-June market opening, valued at $5.7 million. Through November, exports reached 2,225 mt valued at $22.8 million.
“U.S. beef has only really scratched the surface in China, so exports are still relatively small but the value per pound is among the highest in the world,” says Dan Halstrom, USMEF president and CEO. “This makes China an exciting addition to our strong portfolio of Asian markets, where beef exports continue to expand at an impressive rate.”
Surging U.S. pork exports—on pace to be record large for the year—also continue providing support to domestic beef prices.
Through November U.S. pork exports were 7% higher year over while the value of those exports was 10% more at $5.9 billion.