Feeder Cattle futures lost ground Thursday, closing an average of 81¢ lower amid lighter trade and firming Corn futures.
Live Cattle futures paddled in place awaiting more direction. Other than 27¢ higher in spot Feb, they closed an average of 21¢ lower.
Corn futures closed 2¢ to 4¢ higher.
Soybean futures closed 3¢ to 5¢ higher through Mar ’23 and then mostly 1¢ lower.
Negotiated cash fed cattle trade was slow on light demand in Nebraska through Thursday afternoon, according to the Agricultural Marketing Service. There were a few live sales at $142.00-$142.50/cwt., but too few to trend.
Elsewhere, trade was limited in light demand. Although too few to trend, there were a few live trades in the Texas Panhandle at $142.
In established trade so far this week, live prices are $2 higher in Nebraska and the Southern Plains at $142 and $1-$2 higher in the western Corn Belt at $142-$143. Dressed prices are $2 higher at $226.
Choice Boxed beef cutout value was 3¢ lower Wednesday afternoon at $269.59/cwt. Select was $1.23 lower at $264.85.
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Major U.S. financial indices closed sharply lower Thursday with renewed concerns about the potential for Russia to invade Ukraine, as well as inflation worries.
The Dow Jones Industrial Average closed 622 points lower. The S&P 500 closed 94 points lower. The NASDAQ was down 407 points.
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Beef imports to the U.S. totaled 3.35 billion lbs. last year, near 2020 levels, according to livestock economists, in the latest Cattle Market Notes Weekly (CMNW).
“While cumulative imports lagged behind the previous year for most of 2021, strong fourth-quarter imports led to an annual year-over-year increase of just under 6 million lbs.,” say analysts with USDA’s Economic Research Service (ERS), in the recent monthly Livestock, Dairy and Poultry Outlook. “Fourth-quarter 2021 imports totaled 863 million lbs., 25% higher year over year. This was the second-highest fourth-quarter import level, behind 2004.”
“Canada (28%), Mexico (20%), and New Zealand (15%) were the primary sources of beef imports,” according to CMNW. “Australia, typically a top-two import source, was only the fourth largest at 12% followed by Brazil at 11%. Together, these five countries accounted for 87% of total beef imports. Imports from Australia were down 38% percent from 2020, however, their herd is expected to further rebuild in 2022 amid improving rainfall conditions.”
CMNW is authored by Josh Maples at Mississippi State University, James Mitchell at the University of Arkansas and Kenny Burdine at the University of Kentucky.
ERS projects U.S. beef imports this year slightly higher at 3.37 billion lbs. based on sustained strong domestic demand.
On the other side of the equation, ERS analysts say, “Although demand is expected to remain relatively strong in 2022, U.S. beef exports are forecast to decline 5% to 3.270 billion lbs. because of greater expected exportable supplies from Oceania and South America. U.S. exports are expected to pull almost 12% from production in 2022, second only to 2021.”