WLI

Negotiated cash fed cattle trade ranged from limited to mostly inactive on light demand through Friday afternoon, according to the Agricultural Marketing Service.

For the week, live prices were steady in the Texas Panhandle at $120/cwt., steady to $1 higher in Nebraska at $123-$124, unevenly steady in Colorado at $122 and $1 lower in the western Corn Belt at $122-$124. Dressed prices were $1 higher in Nebraska at $196; steady to $1 lower at $194-$196 in the western Corn Belt.

Cattle futures closed lower again Friday, although the pace of decline was less than in recent sessions. Besides feed costs and sluggish cash price progress, there’s also concern about the recently slower slaughter pace and the potential to back up some cattle.

Estimated total cattle slaughter the week ending April 16 was 640,000 head, according to USDA. That was 1,000 head fewer than the previous week. Estimated year-to-date total cattle slaughter of 9.64 million head, is 35,000 head fewer (-0.36%). Estimated year-to-date beef production of 8.06 billion lbs. is 74.9 million lbs. more (+0.94%) than the same time last year.

Live Cattle futures closed an average of 61¢ lower, except for 10¢ higher in the back contract.

Feeder Cattle futures closed an average 73¢ lower (30¢ to $1.00 lower).

Choice boxed beef cutout value was 57¢ lower on Friday at $276.05/cwt. Select was 67¢ higher at $269.10.

Corn futures closed 1¢ to 4¢ lower through the front three contracts, and then mostly fractionally higher to 1¢ lower.

Soybean futures closed 8¢ to 15¢ higher through the front four contracts, and then mostly 3¢ to 6¢ higher. 

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Major U.S. financial indices closed higher again Friday, supported by positive economic news and quarterly earnings reports from major banks that beat trader expectations.

The Dow Jones Industrial Average closed 164 points higher. The S&P 500 closed 15 points higher. The NASDAQ was up 13 points.

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One in four plant-based substitutes for meats are neither high in protein nor a source of protein, according to a recent safefood research report that examined available meat substitutes in Ireland. Safefood’s role is to promote awareness and knowledge of food safety and nutrition on that island.

The safefood research looked at the nutritional content of 354 plant-based meat-substitute products on sale in supermarkets across Ireland. These products included plant-based alternatives such as mince, burgers and sausages, which are positioned in a category of foods that provide protein such as meat, poultry, eggs, fish, nuts and beans.

“However, one in four of the products we surveyed were not an adequate source of protein,” says Catherine Conlon, MB, Director of Human Health & Nutrition with safefood. “When we asked people about these products, a third of people thought they were healthy or better for them. However, many of these plant-based products are simply highly processed foods…”

Negotiated cash fed cattle trade was slow on light demand in the Texas Panhandle through Thursday afternoon, according to the Agricultural Marketing Service. Live prices were steady with last week at $120/cwt.

Elsewhere, trade was slow with moderate demand.

Live prices were steady to $1 higher in Kansas at $120-$121 and steady to $3 higher in Nebraska at $123-$126. Dressed trade was steady to $1 higher at $196.

Live trade was at $120-$123 in Colorado last week; $123-$125 in the western Corn Belt.

Cattle futures closed lower again Thursday, pressured by feed costs, disappointing early cash fed cattle prices and limit down moves in Lean Hog futures.

Live Cattle futures closed an average of 57¢ lower. 

Feeder Cattle futures closed an average $1.04 lower.

Choice boxed beef cutout value was $3.71 higher Thursday afternoon at $276.62/cwt. Select was $1.12 higher at $268.43.

The average dressed steer weight was 894 lbs., the week ending April 3, according to USDA’s Actual Slaughter Under Federal Inspection report. That was 5 lbs. lighter than the previous week but 5 lbs. heavier than the prior year. The average dressed heifer weight of 832 lbs. was 2 lbs. heavier than the prior week and 7 lbs. heavier than the previous year.

Net U.S. beef export sales of 15,700 metric tons (MT) were 14% less than the prior week and 23% less than the previous four-week average, according to the U.S. Export Sales report for the week ending April 8. Increases were primarily for Japan , China, South Korea and Mexico.

Corn futures closed mixed, mostly 1¢ higher to 2¢ lower.

Net U.S. corn export sales (2020-21) of 327,700 mt were down 57% from the previous week and 81% from the prior four-week average.

Soybean futures closed 3¢ to 9¢ higher through Aug ‘22, and then mostly fractionally lower to 1¢ lower, except for 8¢ higher in the back three contracts.

Net U.S. soybean export sales (2020-21) of 1,500 mt were a market-year low, down noticeably from the previous week and from the prior four-week average.

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Major U.S. financial indices closed higher Thursday, buoyed by positive economic news, including a 9.8% jump in retail sales last month, according to the U.S. Census Bureau . That was significantly more than the trade anticipated.

The Dow Jones Industrial Average closed 305 points higher. The S&P 500 closed 45 points higher. The NASDAQ was up 180 points.

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USDA’s Economic Research Service (ERS) increased forecast feeder steer prices for the remainder of this year, based on recent price strength. Compared to the previous month, projected feeder steer prices (basis Oklahoma City) increased $6 in the second quarter to $140.00/cwt., $3 in the third and fourth quarters to $143. The annual average feeder steer price was projected $3.50 higher at $140.

ERS also elevated expectation for the five-area direct fed steer price. Projected prices increased $4 in the second quarter to $117/cwt., $1 in the third quarter to $115 and $1 in the fourth quarter to $120. The expected annual fed steer average price rose to $116.

“In March, cow slaughter was higher than anticipated, while steer and heifer slaughter was lower,” say ERS analysts, in the latest Livestock, Dairy and Poultry Outlook. “This change in slaughter proportions—an effect of the February storm—had the additional effect of lowering carcass weights. As a result, expected first-quarter beef production was lowered 35 million lbs. from last month. Fed cattle marketings and carcass weights were lowered for the second quarter on current data. An increase in fed cattle marketings is anticipated in the third and fourth quarters and is expected to expand 2021 beef production in the second half of the year for a full-year increase of 60 million lbs. (compared to the prior month) to 27.640 billion lbs.

Negotiated cash fed cattle trade in all major cattle feeding regions ranged from a standstill to mostly inactive on very light demand through Wednesday afternoon, according to the Agricultural Marketing Service.

Cattle futures closed lower again Wednesday, but off of session lows. Pressure included the jump in grain prices, lack of cash direction and recently declining open interest. Live Cattle open interest declined 7,303 contracts week to week on Tuesday.

Live Cattle futures closed an average of 48¢ lower (15¢ to 87¢ lower). 

Feeder Cattle futures closed an average $1.32 lower.

Choice boxed beef cutout value was $2.80 higher Wednesday afternoon at $272.91/cwt. Select was 77¢ higher at $267.31.

Grain futures rallied higher Wednesday, fueled by forecast cold weather in the U.S. Corn Belt for the next couple of weeks and continued dryness in South America.

Corn futures closed 10¢ to 14¢ higher through the front three contracts and then mostly 5¢ to 6¢ higher.

Soybean futures closed 10¢ to 20¢ higher through Jly ‘22, and then mostly 8¢ higher.

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Major U.S. financial indices closed mixed Wednesday, with pressure from big tech stocks, but major bank stocks beating quarterly earnings forecasts.

The Dow Jones Industrial Average closed 53 points higher. The S&P 500 16 points lower.The NASDAQ was down 138 points.

CME WTI Crude Oil futures closed $2.65 to $2.97 higher through the front six contracts.

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Consumers view livestock production as a solution to climate change, rather than the problem, according to Cargill’s latest quarterly global Feed4Thought survey.

Specifically, those who indicated climate change as important to them also rated livestock and agriculture lowest in negative impact, compared with other industries generally regarded as significant contributors.

Cargill’s Feed4Thought survey included responses from 2,510 consumers representing the U.S., France, South Korea and Brazil. Overall, survey respondents ranked transportation and deforestation as the greatest contributors to climate change.

 Of those surveyed, 59% said that federal and national governments bear the highest responsibility for addressing climate change. In terms of reducing livestock’s impact on climate change, 57% of respondents cited companies involved in beef production and 50% cited cattle producers.

U.S. cattle producers have a long history of climate-friendly, sustainable beef production. They reduced the carbon footprint of the industry by 40%, while increasing beef production by 66% between the 1960s and 2018, according to the National Cattlemen’s Beef Association (NCBA).

“We already know a growing global population will require and demand high-quality food, which means we need ruminant animals, like beef cattle, to help make more protein with fewer resources,” says Jerry Bohn, a Kansas cattleman and NCBA president. “Cattle generate more protein for the human food supply than would exist without them because their unique digestive system allows them to convert human-inedible plants, like grass, into high-quality protein.”

A recent research paper confirmed U.S. beef production is the most sustainable production system in the world.

The study—Reducing climate impacts of beef production: A synthesis of life cycle assessments across management systems and global regions—examined livestock lifecycle assessments (LCAs) from across the globe to reach its conclusions and pointed out that there is significant room for improvement of global livestock production practices. While it laid out many opportunities for improvement, it also recognized the work already done by the U.S. cattle industry to become the leader in sustainable beef production. Thanks to early adoption of innovative grazing practices, combined with advances in cattle breeding and nutrition, U.S. producers have already employed many of the suggested practices that the study suggests employing around the world.

According to Cargill’s Feed4Thought survey, nearly 80% of consumers around the world, who indicated climate change as important, reported a willingness to make a change in the type of food they purchase. In turn, about half of these consumers said they would be willing to pay a premium for a product that promises a low carbon footprint to curb their impact.

When asked about the most important factors considered at point of purchase, consumers ranked highest: taste; avoidance of antibiotics/growth hormones/steroids use; knowing where products come from.

“Beef and cattle production is a critical part of our country’s identity as a global leader in sustainable beef production, but also in our long-held principle that economic, environmental, and community-based sustainability will result in widespread benefits,” says Bohn. “U.S. farmers and ranchers are the best in the world when it comes to producing safe, wholesome and sustainable high-quality beef for American families, and doing it with the smallest possible footprint and we’re committed to continuing on that path of improvement.”

Negotiated cash fed cattle trade in all major cattle feeding regions ranged from a standstill to mostly inactive on very light demand through Tuesday afternoon, according to the Agricultural Marketing Service.

Live prices last week were at $120/cwt. in the Southern Plains, $120-$123 in Colorado, $123 in Nebraska and $123-$125 in the western Corn Belt. Dressed trade was at $195-$196.

Cattle futures closed Lower Tuesday, especially Feeder Cattle, challenged by technical correction and the relentless march higher of corn prices. As well, wholesale beef values stalled the last couple of days.

Live Cattle futures closed an average of 66¢ lower (15¢ to $1.17 lower). 

Feeder Cattle futures closed an average $2.09 lower.

Choice boxed beef cutout value was $1.30 lower Tuesday afternoon at $270.11/cwt. Select was 38¢ higher at $266.54.

Corn futures closed 10¢ to 11¢ higher through the front three contracts and then mostly 4¢ to 7¢ higher.

Soybean futures closed 1¢ to 7¢ higher across the front half of the board, and then fractionally lower.

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Major U.S. financial indices closed mixed Tuesday. Most pressure focused on stocks benefitting more from further reopening the economy. That was tied to the FDA recommending states pause the use of the Johnson & Johnson COVID-19 vaccine, based on reports of adverse health reactions.

The Dow Jones Industrial Average closed 68 points lower. The S&P 500 closed 13 points lower. The NASDAQ was down 146 points.

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Amid elevated wholesale beef values, David Anderson, Extension livestock economist at Texas A&M University says it’s worth remembering beef demand strength, heading into the pandemic.

“A growing economy, falling unemployment, and consumer preferences trending towards higher USDA quality grade beef were building demand,” Anderson says, in the latest issue of In the Cattle Markets. “…The retail all fresh beef demand index scored 119 for 2020, the best in 20 years. That index is calculated using per capita consumption, USDA, BLS retail prices, which only reflect grocery store prices. Regardless, it suggests that we exit the pandemic with a strong base of beef demand.”

Moreover, Anderson says the approaching grilling season, further opening of U.S. businesses and pent-up consumer demand promise to boost prices.

“One macroeconomic statistic that I find interesting is Personal Savings as a Percent of Disposable Personal Income,” Anderson says. “Prior to the pandemic, since 2011, savings averaged about 7%. When widespread shutdowns hit in the second quarter of 2020, GDP fell 9%. With no place to go spend, savings skyrocketed to 26%. While savings declined to 13% since then, that is a lot of money for folks to spend to fund some pent-up demand fun. Economic reopening, combined with people spending and tighter beef supplies later in the year, should suggest some optimism.”

Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

Live prices last week were $3 higher in the Southern Plains at $120, mostly $5 higher in Nebraska at mostly $123, $5 higher in the western Corn Belt at $123-$125 and at $120-$123 in Colorado, where there was no established market the previous week. Dressed prices were $5 higher in Nebraska at $195 and $6-$7 higher in the western Corn Belt at $195-$196.

Cattle futures closed narrowly mixed on Monday, firming after the profit-taking selloff that ended last week. Lower front-month Corn futures prices added support.

Live Cattle futures closed an average of 31¢ lower, except for an average of 9¢ higher in three contracts.

Feeder Cattle futures closed an average of 32¢ higher, except for 25¢ lower in spot Apr.

Choice boxed beef cutout value was 76¢ lower Monday afternoon at $271.41/cwt. Select was $2.09 higher at $266.16.

Corn futures closed 3¢ to 8¢ lower through the front three contracts and then mostly fractionally higher to 1¢ higher.

Soybean futures closed 12¢ to 21¢ lower through the front six contracts, and then mostly 5¢ to 9¢ lower.

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Major U.S. financial indices closed slightly lower Monday, but basically tread water as investors await key inflation data and the beginning of quarterly corporate earnings reports this week.

The Dow Jones Industrial Average closed 55 points lower. The S&P 500 closed fractionally lower. The NASDAQ was down 50 points.

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Although COVID disruptions continue to hamper U.S. beef exports, in terms of year-over-year performance, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University points out they were 15.6% more for volume last year, compared to five years earlier.

“Beef exports have evolved significantly in recent years, in a very dynamic environment of global politics and trade policies, direct and indirect impacts of animal disease outbreaks and growing beef preferences and consumption,” Peel explains, in his weekly market comments.

Japan and South Korea continue to be key, growing market destinations.

“Japan has been the largest U.S. beef export market since 2013 (and was for many years prior to 2004), with the 2020 market share at 28% of total exports,” Peel says.  “Beef exports to Japan grew at an average rate of 9.7% annually from 2016 to 2020 with peak exports in 2018 and a decrease in 2019 before rebounding modestly in 2020, despite pandemic disruptions.” 

South Korea became the second largest U.S. beef export market in 2016. It continues to be the fastest, most consistently growing U.S. market, according to Peel.

“Beef exports to South Korea have increased by an average of 17.4% in the last five years, pushing the country to a nearly 23% market share in 2020, just behind Japan,” Peel says. “In fact, in the first two months of 2021, beef exports to South Korea are up 15.1% percent year over year, pushing South Korea just ahead of Japan as the number one beef export market so far this year.”

Consider China and Hong Kong together—essentially a single market—and it represents the third largest U.S. beef export market, accounting for 11.5% of market share last year, Peel says.

Considering countries separately, however, Mexico is currently the third largest export market for U.S. beef. Peel explains U.S. beef exports to Mexico declined 24.7% year over year in 2020, pressured by that nation’s faltering economy and pandemic impacts.