Negotiated cash fed cattle trade ranged from mostly inactive on moderate demand in the Southern Plains to limited on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
For the week, however, FOB live prices were mostly $245/cwt., which was $7 higher in the Southern Plains and $10 higher in the North. Dressed delivered prices were mostly $13 higher at mainly $385.
Estimated total cattle slaughter last week of 533,000 head was 10,000 head more than the previous week but 53,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 7.1 million head was 796,000 head fewer (-10.1%) than the same period a year earlier. Estimated year-to-date production of 6.3 billion pounds was 521.4 million pounds less (-7.6%).
Higher cash fed cattle prices came in the face of sluggish wholesale beef values. Choice boxed beef cutout value was $1.80 lower Friday afternoon at $387.78/cwt. Select was $1.51 lower at $386.19. Week to week on Friday, Choice was $5.19 lower and Select was $3.68 lower.
Futures markets were closed Friday, in observance of Good Friday. For the week, though, Cattle futures were sharply higher.
Week to week on Thursday, Live Cattle futures closed an average of $7.92 higher. Feeder Cattle futures closed an average of $17.30 higher. During the same period, Corn futures closed 13’3¢ lower through the front six contracts.
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Equity markets were also closed Friday.
Although major U.S. financial indices gained on the week, uncertainty related to the U.S. war with Iran and sharply higher nearby crude oil prices continued to weigh on sentiment. Crude Oil futures (WTI-CME) closed an average of $8.45 higher in the front three contracts week to week on Thursday and then an average of $4.41 lower in the next three contracts.
An economic bright spot heading into this week was a more positive labor outlook than expected. Total non-farm payroll employment increased by 178,000 in March, and the unemployment rate changed little at 4.3%, according to the U.S. Bureau of Labor Statistics on Friday. In March, average hourly earnings for all employees on private non-farm payrolls rose by 9¢ to $37.38. Average hourly earnings have increased by 3.5% over the last 12 months.
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U.S. beef exports totaled 85,066 metric tons (mt) in February, which was 13% less year over year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Value fell 10% to $722.7 million. Much of the shortfall stemmed from China’s lockout of U.S. beef. Exports were also below last year to Korea, Japan and Canada. However, exports increased year-over-year to Mexico, Taiwan, the Caribbean and South America, while demand was steady in the Middle East and Central America. Excluding China, February exports were 4% higher in value and just 1% below last year’s volume.
Exports of beef variety meats were a bright spot. The 24,081 mt of beef variety meat in February were 12% more than a year earlier, while the value of these shipments soared 40% to $106 million.
“Beef variety meat exports continue to trend higher, especially on the value side, and that makes such an important contribution to the value of every animal,” says Dan Halstrom, USMEF president and CEO. “Where U.S. beef has access, muscle cut demand has held up well and provides a great complement to our robust domestic market. But for beef variety meats, export markets are really the whole ball game, so it’s great to see these products achieve broad-based growth.”
Beef export value equated to $422.87 per head of fed slaughter in February, down 2% from a year ago but the highest in 11 months. The January-February per-head average was $418.83, up 5% from a year earlier.
February U.S. pork exports totaled 242,511 mt, up 1% from a year ago, with export value edging 1% higher to $678.8 million.