Cattle futures took a solid step lower Tuesday, led by Feeder Cattle, apparently mostly due to heavier trade and continued profit taking. However, prices at the close remained in the long-established, sideways channel.
Live Cattle futures closed an average of $1.07 lower (32¢ lower in spot Aug to $1.55 lower).
Feeder Cattle futures closed an average of $1.91 lower (62¢ to $3.12 lower).
Boxed beef cutout values were steady on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 19¢ lower Tuesday afternoon at $205.49/cwt. Select was 18¢ higher at $198.51.
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Major U.S. financial indices continued higher Tuesday, driven by quarterly earnings reports that continue more positive than expected.
The Dow Jones Industrial average closed 126 points higher. The S&P 500 closed 8 points higher. The NASDAQ was up 23 points.
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U.S. beef exports continue on a record pace, according to the latest data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
June beef exports of 115,718 metric tons (mt), including variety meats, were 6% more than the previous year. The value of June beef exports was 19% more year over year at $722.1 million, just slightly less than the new record set the previous month.
Beef exports for the first half of this year are also record large in both volume and value. Export volume for the first two quarters was 9% more than the same period last year at 662,875 mt. Export value was up 21% at just over $4 billion. In previous years, export value never topped the $4 billion mark before August.
“It’s remarkable to think that as recently as 2010, beef exports for the entire year totaled $4 billion, and now that milestone has been reached in just six months,” says Dan Halstrom, USMEF president and CEO. “This should be a source of great pride for the beef industry, which has remained committed to expanding exports even when facing numerous obstacles. And with global demand hitting on all cylinders, there is plenty of room for further growth.”
Beef export value averaged $313.56 per head of fed slaughter in June, up 19% from a year ago. The first-half average was $316.94 per head, up 18%.
U.S. pork exports, though, are beginning to sag beneath the weight of trade issues.
Export volume trended lower the past two months, mainly due to lower exports to the China/Hong Kong region. June pork exports were 4.5% less than a year earlier and 3% less for value at $510.4 million. Due to strength before then, U.S. pork exports are 2% more in volume for the first six months of the year—compared to the same period last year—and 5% more in value at $3.36 billion.
“Pork exports–and especially variety meats–face a very challenging environment in China/Hong Kong due not only to retaliatory duties but also because of increasing domestic production in China,” Halstrom explains. “On the positive side, exports are achieving solid growth in most other markets and reached new heights in destinations such as Korea and Latin America.”