Apparently traders considered the previous day’s Cattle inventory numbers to their liking as Cattle futures steamed ahead with apparent short covering, technical buying and perhaps concerns about the expanding drought.
Live Cattle futures closed an average of $2.29 higher.
Feeder Cattle futures closed at average of $3.99 higher.
Wholesale beef values continued in sideways trade on Thursday. Choice boxed beef cutout value was 46¢ lower at $209.60. Select was 22¢ higher at 204.54.
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On Wall Street Thursday, major U.S. financial indices closed narrowly mixed in choppy trade. Less fourth-quarter U.S. production and worries about higher interest rates were credited with the pressure.
The Dow Jones Industrial Average closed 37 points higher. The S&P 500 closed 1 point lower. The NASDAQ closed 25 points lower.
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The U.S. beef industry is well positioned to capitalize on a growing global middle class and an improving economy, but trade uncertainty could hamstring the U.S. ability to capture market share in the coming years, according to a new report from CoBank’s Knowledge Exchange Division.
“Beef production in the U.S. is on the rise, and export outlets have never been more important,” says Trevor Amen, industry analyst with CoBank’s Knowledge Exchange Division. “However, he explains the U.S. is threatening to retreat from key trade deals, while U.S. beef export competitors are forging their own deals with major global beef importers.”
According to the CoBank report, approximately 80% of beef exports are sold to countries that could be affected by ongoing trade pact negotiations. Trade deals being negotiated or recently approved include the Trans Pacific Partnership, the North American Free Trade Agreement and the United States-Korea Free Trade Agreement. Those are either being renegotiated by the U.S. or we’ve dropped out of the agreement altogether.