Weekly negotiated cash fed cattle trade was late again on Friday, but at prices reportedly $1-$2 higher than the previous week on a live basis at $113-$114/cwt. and as much as $4 high in the beef at $178.
Notions of stronger cash prices and technical buying helped Cattle futures close solidly higher.
Live Cattle futures closed an average of $1.29 higher (82¢ to $2.07 higher).
Feeder Cattle futures closed an average of $1.41 higher.
Boxed beef cutout values were higher on Choice and steady on Select with moderate to fairly good demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 95¢ higher Friday afternoon at $204.75/cwt. Select was 1¢ lower at $197.09.
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Major U.S. financial indices closed higher Friday.
The Dow Jones Industrial average closed 136 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 9 points.
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“Amidst trade tariff and retaliation tariff cycles, one of the big takeaways in cold storage is how little pork inventories changed,” say analysts with the Livestock Marketing Information Center (LMIC), in the most recent Livestock Monitor. “Total pork in cold storage remained unchanged in the month of June compared to the previous year and was below the prior month by 10%. Of the 12 categories of pork tracked, bellies and trimmings were the only two categories to show worrisome year-over-year gains, up 130% and 38%, respectively. Although bellies are still building back from historically low levels of the prior year, both cuts also declined relative to May inventories, providing some comfort that the market is continuing to work through large pork supplies and changing trade landscapes.”
As reported previously in Cattle Current, total pounds of beef in freezers June 30 were 3% less than the previous month, but 8% more than the same time a year earlier, according to USDA’s July Cold Storage report.
Total red meat supplies in freezers were down 7% from the previous, month but up 5% from last year.
Total frozen poultry supplies were 3% more than the previous month and 6% more than the previous year.
“As much as trade is weighing in the current market, the most recent cold storage and trade data does not reflect the full weight of what has happened or will happen in the export markets,” LMIC analysts say. “Poultry products did make the list of retaliatory actions by China. The U.S. exports very little poultry meat to China, but about 25% of total poultry meat exports go to Mexico. Larger production is the majority of what is driving the current levels in cold storage, but that could change in the coming months for poultry and pork.”