Cattle futures closed higher in the nearby contracts and then on either side of steady. Along with apparent short covering, ongoing strength in wholesale beef values provided some support, as did higher outside markets.
After an average of $1.19 higher in the front two contracts, Live Cattle futures closed an average of 16¢ higher, except for 2¢ lower in away Apr.
After 77¢ higher in spot Mar, Feeder Cattle futures closed narrowly mixed, 22¢ lower to 20¢ higher.
Choice boxed beef cutout value was 26¢ higher Friday afternoon at $224.14/cwt. Select was 48¢ higher at $217.26.
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Major U.S. financial indices spiked sharply higher on Friday, fueled by a monthly jobs report that bulldozed expectations to the upside. Total non-farm payroll employment increased by 313,000 in February, according to the U.S. Bureau of Labor Statistics. The unemployment rate remained at 4.1%. At the same time, softer wage growth (+2.6%) diluted some of the chatter about inflation.
The Dow Jones Industrial Average closed 440 points higher. The S&P 500 closed 47 points higher. The NASDAQ closed 132 points higher.
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U.S. beef exports continued at a strong pace in January, accounting for $293.06 per head of fed slaughter—14% more than the previous January—according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
U.S. beef exports totaled 105,486 metric tons (mt) in January, up 9% year over year, while export value surged 21% to $624.4 million.
“January export results were solid overall and were especially strong for muscle cuts,” says USMEF President and CEO Dan Halstrom. “Despite the decline in variety meat volume, export value continued to increase. This underscores the important contribution variety meats deliver for producers and for everyone in the U.S. supply chain.”
Among the January highlights:
U.S. beef exports to Japan were 7% more for volume (23,968 mt) and 19% more in value ($148.6 million).
Exports to South Korea were 13% more for volume (17,133 mt) and 34% more for value ($122.3 million). Incidentally, U.S. beef exports to South Korea last year were record high for value at $1.2 billion.
U.S. beef exports to China reached a new monthly high of 819 mt in January valued at $7.5 million.