Cattle futures moved lower again Monday, amid up-and-down, choppy trade. Declining open interest suggests current uncertainty is keeping some folks off the field.
Except for 10¢ higher in the back contract, Live Cattle futures closed an average of 55¢ lower (15¢ lower in spot Jun to $1.17 lower).
Feeder Cattle futures closed an average of 73¢ lower (from 30¢ lower at the back of the board to $1.47 lower in spot Aug).
Boxed beef cutout values were steady for Choice and higher for Select Monday on moderate to fairly good demand and moderate to heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 4¢ higher in the afternoon at $227.57/cwt. Select was $1.45 higher at $206.25.
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Major U.S. financial indices closed higher on Monday, with follow-through buying from Friday’s rally and boosted by tech stocks, including Apple and Amazon. The tech-based NASDAQ closed up 52 points and at a record high. The Dow Jones Industrial Average closed 178 points higher. The S&P 500 closed 12 points higher.
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Notwithstanding simmering trade tensions and current trade negotiations, U.S. beef exports in 2019 are forecast at 3.15 billion pounds, a new record volume, according to last months Livestock, Dairy and Poultry Outlook. That would be 3.8% more than estimated for this year.
U.S. beef exports increased 12% from year-earlier levels in the first quarter of this year, according to USDA’s Economic Research Service (ERS).
“Global meat and poultry demand continues to fuel the growth in U.S. production (see below), driven, in part, by economic expansion in the developing world,” say ERS analysts (Jones, Haley and Melton) in a recent Amber Waves article. “While U.S. meat and poultry imports have remained fairly stable since 2000, U.S. exports of the same goods have grown at an average of 4% per year. An increase in global demand has likely contributed to favorable conditions for U.S. exports. As a result, net exports have increased by an average of 7.2% since 2000 and are expected to increase a further 5% in 2018, or more than 600 million lbs.”