Oversold conditions helped Cattle futures claw back a little more of recent losses.
Feeder Cattle futures closed an average of $1.57 higher, except for an average of 59¢ lower in the front two contracts.
That was with Corn futures gaining on likely positioning ahead of tomorrow’s month World Agricultural Supply and Demand Estimates.
Corn futures closed mostly 3¢ to 9¢ higher.
Soybean futures closed mostly 22¢ to 26¢ higher.
Live Cattle futures closed an average of 62¢ higher, except for 12¢ lower in nearby Jun.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, live prices are steady to $1 lower in the Southern Plains at $137-$138/cwt., steady in Nebraska at $138-$140. Prices are $140 in the western Corn Belt, compared to the previous week’s $139-$143. There were also some live sales reported in Colorado for the first time in a long while at $138. Dressed prices so far this week are steady at $222.
Choice Boxed beef cutout value was 36¢ higher Thursday afternoon at $271.40/cwt. Select was 17¢ higher at $261.22.
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Major U.S. financial indices edged higher Thursday as investors wrestled with figuring out longer-term impacts of higher inflation and interest rates.
The Dow Jones Industrial Average closed 87 points higher. The S&P 500 closed 19 points higher. The NASDAQ was up 8 points.
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U.S. beef exports continued at a steamy pace in February, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 108,501 metric tons (mt) in February, up 5% from a year ago. Value of exports climbed 35% to $904.4 million, led by growth in key Asian and Latin American markets. Through the first two months of the year, exports increased 9% to 227,567 mt, while value soared 46% to $1.93 billion.
“Broad-based growth has become a recurring theme for U.S. beef exports, as international demand has never been higher and global supplies remain tight,” says USMEF President and CEO Dan Halstrom. “We anticipated a lift from COVID-related foodservice restrictions being eased in many destinations. This materialized late last year and in early 2022, although conditions still vary by country. While lockdowns in China and Hong Kong are certainly a setback for foodservice demand, those are the main exceptions as most countries have shifted to more of a living-with-COVID approach.”
February beef export value equated to $445.95 per head of fed slaughter, up 29% from a year ago. The January-February average was $474.87 per head, up 45%.
Pork exports trended lower year-over-year, as larger shipments to Mexico and Japan did not offset the continued decline in demand from China/Hong Kong.
February pork exports were 198,539 mt, down 17% from a year ago, while export value fell 14% to $541.3 million. Through February, exports were also down 17% in volume (407,347 mt) and 14% in value ($1.1 billion).
Going forward, Halstrom notes the sharp increase in European hog prices last month could lead to more opportunity for U.S. pork exports.
“Rarely have we seen so many outside forces creating headwinds for U.S. meat exports and such uncertainty in the global marketplace,” Halstrom says. “Yet consumer demand for high-quality beef, pork and lamb has proven resilient, and USMEF sees opportunities for further growth in both established and emerging markets.”