Cattle futures dropped on Friday, amid more trade worries, even as the most recent statistics show that U.S. beef exports continue higher year over year…coming up on your Cattle Current Market Update with Wes Ishmael.
Cattle futures closed sharply lower on Friday, amid position squaring and renewed angst about international trade issues.
Live Cattle futures closed an average of $1.54 lower (72¢ to $2.72 lower).
Feeder Cattle futures closed an average of $1.69 lower ($1.22 to $2.42 lower).
Choice boxed beef cutout value was 78¢ lower Friday afternoon at $214.31/cwt. Select was 71¢ lower at $205.60.
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Major U.S. financial indices closed sharply lower on Friday, on more worries about a trade war with China after the Trump Administration directed the U.S. Trade Representative to determine if an additional $100 billion worth of tariffs on Chinese imports would be appropriate. Some also viewed the monthly unemployment report as bearish. Although non-farm payroll employment increased by 103,000 in March, according to the Bureau of Labor Statistics, it was less than the trade anticipated.
The Dow Jones Industrial Average closed 572 points lower. The S&P 500 closed 58 points lower. The NASDAQ closed 161 points lower.
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U.S. beef exports continue to provide critical support for domestic prices.
February exports of U.S. beef were higher than a year ago in both volume and value, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Specifically, February beef export volume (100,593 metric tons) improved 11% from the previous year, while export value increased 18% to $599.8 million. For the first two months of the year, beef export volume (206,079 mt) was 10% more than the first two months of 2017, while export value was 20% more at $1.22 billion.
For meaning closer to home, February beef export value averaged $322.29 per head of fed slaughter, up 16% from a year ago. Through February, per-head export value averaged $306.69, up 15%.
“Red meat exports are off to a strong start in 2018 and continue to deliver excellent returns for U.S. producers,” says Dan Halstrom, USMEF President and CEO. “The outstanding level of export value per head slaughtered is especially encouraging at a time in which U.S. meat production is high and the trade climate is somewhat volatile. Through all the uncertainty, international customers remain very committed to U.S. pork and beef.”