Cattle futures gave back some of the previous session’s gains with declining wholesale beef prices and the outlook for perhaps lower cash fed cattle trade again this week. Pressure may have also included USDA confirmation the previous day of highly pathogenic avian influenza (HPAI) H5N1 in a Nebraska dairy cattle herd.
Toward the close, Live cattle futures were an average of 58¢ lower. Feeder Cattle futures were an average of $1.16 lower, except for 17¢ higher in near Oct.
Negotiated cash fed cattle was inactive on light to moderate demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were mainly $240/cwt. in all regions. Dressed delivered prices were $375-$378.
Choice boxed beef cutout value was $5.91 lower Tuesday afternoon at $392.62/cwt. Select was $5.63 lower at $373.17.
Grain and Soybean futures bounced higher Tuesday, helped by reports of lower corn and soybean yields and the lower U.S. Dollar.
Toward the close and through away Jly contracts, Corn futures were 4¢ to 5¢ higher. Kansas City Wheat futures were 8¢ higher. Soybean futures were 6¢ higher.
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Major U.S. financial indices eased lower Tuesday, with profit taking ahead of this week’s Fed decision about interest rates.
The Dow Jones Industrial Average closed 125 points lower. The S&P 500 closed 8 points lower. The NASDAQ was down 14 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 91¢ to $1.26 higher through the front six contracts.
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U.S. Beef imports continue to rise with shipments from January through July totaling more than 3.4 billion pounds, up +30% (790 million pounds) from the same period last year, according to Livestock Marketeing Informatiom Center, in the latest Livestock Monitor.
“Available domestic supplies are expected to remain tight, which will likely continue the trend of higher beef imports,” AMS analysts say. “If so, this could contribute to lower available exportable beef supplies in the near term.”
Through the first seven months of this year, exports were 8% below last year in volume at 691,800 metric tons and down 7.5% in value at$5.67 billion, according to data released by USDA and compiled by the U.S. Meat Export Federation.