Packers and feedlots remained a good $4-$5 apart by most accounts, through late Thursday afternoon, but expectations continue for steady to higher cash trade. That and a step higher in wholesale beef values helped lift Cattle futures.
Choice boxed beef cutout value was $1.23 higher on Thursday afternoon at $209.04/cwt. Select was $1.63 higher at $205.14.
Except for 20¢ higher at the back of the board, Live Cattle futures closed an average of $1.18 higher (62¢ to $2.02 higher in near Apr).
Feeder Cattle futures closed an average of $1.49 higher ($1.02 to $1.95 higher).
Major U.S. financial indices closed sharply higher again on Thursday. Apparently investors are getting more comfortable with higher inflation and interest rates, or at least considering them byproducts of growing fundamental economic strength.
The Dow Jones Industrial Average closed 306 points higher. The S&P 500 closed 32 points higher. The NASDAQ closed 112 points higher.
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U.S. beef exports are poised to build upon two consecutive years of double digit growth, according to analysts with USDA’s Economic Research Service (ERS), in the latest Livestock, Dairy and Poultry Outlook.
The forecast for 2018 beef exports was revised upward by 40 million lbs. from the previous month’s forecast to 3.0 billion lbs. based on continuing strong demand in overseas markets and the weakening of the U.S. dollar at the beginning of 2018,” ERS analysts say. “The U.S. dollar trade index has dropped to the lowest level since June 2015, making U.S. products more attractive in foreign markets.”