Daily Market Highlights

Cattle futures on Tuesday picked up where they left off last week, gaining more ground, albeit with light and two-sided trade.

Live Cattle futures closed an average of 31¢ higher.

Feeder Cattle futures closed an average of 74¢ higher (30¢ to $1.10 higher).

Wholesale beef values were lower on Choice and sharply lower on Select with light demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.13 lower Tuesday afternoon at $206.13/cwt. Select was $2.45 lower at $203.73.

Corn futures closed 4¢ to 5¢ higher through Jly ’21 and then 1¢ to 2¢ higher.

Soybean futures closed 1¢ to 2¢ lower.

*******************************

Major U.S. financial indices mainly softened Tuesday, with most of the pressure attributed to continued worries about the impact of novel coronavirus on global economic growth.

The Dow Jones Industrial Average closed 165 points lower. The S&P 500 closed 9 points lower. The NASDAQ was up 1 point.

*******************************

“The lower year-over-year 2019 calf crop will reduce the number of steers and heifers available for slaughter in the second half of the year and place upward pressure on feeder steer prices,” say analysts, with USDA’s Economic Research Service (ERS), in the latest monthly USDA Livestock, Dairy and Poultry Outlook.

Based on current prices, ERS increased the annual expected feeder cattle price (basis Oklahoma City) by $1 to $146/cwt. By quarter, feeder steers prices are projected at $145 in the first and second quarters, at $148 in the third quarter and at $146 in the fourth quarter.

ERS increased anticipated U.S. beef production for the first half of 2020, reflecting a faster pace of slaughter, but lowered second-half expectations on the anticipation of fewer steers and heifers available for slaughter, due to a slower pace of placements during 2020.

ERS lowered its expected first-quarter fed steer price to $123/cwt. on recent price weakness.

Through Friday, the five-area direct price for steers was $118.90/cwt. on a live basis and $190.27 in the beef. Week to week, that was $2.15 lower and $2.91 lower, respectively.

Futures and equity markets were closed Monday, in observance of Presidents Day, so it will be another day before finding out if the late-week momentum in Cattle futures carries ahead.

Wholesale beef values were lower on Choice and firm on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 83¢ lower Monday afternoon at $207.26/cwt. Select was 47¢ higher at $206.18.

*******************************

“Heavier carcass weights in 2020 are expected to keep total beef production at or near record levels even as cattle slaughter decreases slightly,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his latest weekly market comments. “Moreover, steer and heifer carcass weights in 2020 may indicate whether the industry is resuming the long-term trend of ever-larger carcasses.”

Steer carcass weights averaged 879.0 lbs. last year, according to Peel. That was 1.5 lbs. less than the previous year. Heifer carcass weights last year averaged 813.1 lbs., down 3.4 lbs. from the prior year. 

“Monthly steer carcass weights were lower year over year for the first nine months of 2019 before moving sharply higher at the end of the year. In fact, monthly steer carcass weights were lower year over year for 31 of 41 months from May 2016 through September 2019,” Peel says. “Heifer carcass weights were lower 26 of 38 months from August 2016 through September 2019. However, steer and heifer carcass weights jumped sharply higher in November and December compared to the previous year and appear to have resumed the long-term trend of higher carcass weights.”

For longer term perspective, Peel explains annual steer carcass weights peaked in 2015 at 892.0 lbs. but averaged lower since then. Heifer carcass weights peaked in 2016 at 821.5 lbs. and have averaged lower through 2019.

“The moderation of carcass weights since 2016 has raised the question of whether the long trend of higher carcass weight was over,” Peel says. “Since 1960, steer carcass weights have averaged 3.8 lbs. larger each year, increasing from 656.3 lbs. in 1960 to 879 lbs. in 2019. Heifer carcass weights have increased an annual average of 4.5 lbs. per year from 545.6 lbs. in 1960 to 813.1 lbs. in 2019.”

As an aside, although economic incentive suggests a continuation of increasing carcass weights, you can find some cattle feeders who believe cattle physiology will cap future carcass growth. Said differently, there are some who think cattle weights are growing beyond the ability of cattle skeletal structure and internal organs to support them.

Moreover, Peel points out, “Multiple research studies have shown that bigger carcasses and the larger beef cuts (bigger steaks) that result have some negative demand implications. If the larger carcass trend resumes, these issues will continue to grow resulting in increased product fabrication needs and alternative product marketing.”

Negotiated cash fed cattle trade ended the week $2-$3 lower at $119/cwt. on a live basis and $3 lower in the beef at $190.

Recent oversold conditions continued to help lift Cattle futures higher Friday as traders positioned for the three-day weekend.

Live Cattle futures closed an average of $1.17 higher, from 77¢ higher to $1.80 higher toward the front of the board.

Feeder Cattle futures closed an average of $2.36 higher. That’s an average of $3.62 higher in the last two sessions.

Wholesale beef values were higher on good demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.64 higher Friday afternoon at $208.09/cwt. Select was $1.92 higher at $205.71.

Corn futures closed mostly 2¢ to 3¢ lower.

Soybean futures closed 2¢ lower to 2¢ higher.

*******************************

Major U.S. financial indices closed little changed Friday, amid mixed economic news and as investors positioned for the holiday weekend.

The Dow Jones Industrial Average closed 25 points lower. The S&P 500 closed 6 points higher. The NASDAQ was up 19 points.

*******************************

“The cattle herd is expected to decline cyclically in the early part of the projection as producers respond to lower returns,” say USDA analysts, in the Agricultural Projections to 2029, released Friday. “A decline in cattle numbers early in the period will likely contribute to higher cattle prices, although a modest herd expansion the rest of the period pressures cattle prices lower. Rising slaughter weights, due to efficiencies from nutrition and genetics, will further support gains in beef production. Overall, beef production levels are expected to rise to 29.5 billion lbs. by 2029.”

The five-area direct fed steer price is projected to be $116/cwt. this year, then range from $116.37 (2024) to $121.39 (2023) over the next five years. From there, through 2029, the estimated range is $110.58 (2028) to $114.70 (2026).

USDA projects this year’s feeder steer price (basis Oklahoma City) to be $141/cwt. It ranges from $138.13 (2028) to $151.27 (2023) for the remainder of the projection period.

This year’s projected farm calf price of $160/cwt. is the lowest of the projection period, which ranges from $165.17 (2028) to $180.88 (2023).

Keep in mind short-term projections in the report began with the October 2019 USDA World Agricultural Supply and Demand Estimates report. Projections don’t include recent trade deals, such as the Japan-U.S. free trade agreement, phase-one China trade deal or the U.S.-Mexico-Canada trade agreement.

“Robust demand provides incentives for the continued growth of the U.S. livestock sector over the next 10 years,” say USDA analysts. “In the beef cattle industry, the feed price ratio (cattle price/feed price) is expected to decline over the projection period, reflecting both modestly lower cattle prices and slowly rising feed prices, suggesting lower returns to production.”

Macroeconomic assumptions to the projections (completed in August last year) include:

Global macroeconomic conditions reflect real economic growth that is lower than in the 2010-2019 period, a relatively strong but declining U.S. dollar, and rising oil prices, which are expected to reach $91 per barrel by 2029.

Global real economic growth is projected to average 2.7% annually over the next decade, 2020-29. The United States is expected to average 1.8% growth annually, while developed countries, as a group, are expected to experience an average of 1.5% percent annual growth. Meanwhile, growth in the developing countries remains faster than the global average, but declines from 4.8% annual average growth during 2010-19, to 4.3% during 2020-29.

Steady global economic growth supports longer-term gains in world food demand, global agricultural trade, and U.S. agricultural exports. Economic growth in developing countries is especially important because food consumption and feed use are particularly responsive to income growth in those countries.

Lower prices for negotiated cash fed cattle continued in Nebraska and the western Corn Belt late Wednesday and Thursday with live sales $2-$3 lower at $119/cwt. and dressed sales $3 lower at $190.

Cattle futures continued to regain some footing amid more active trade and expanding open interest for the first time in a spell.

Live Cattle futures closed an average of 79¢ higher, from 40¢ higher to $1.40 higher in the back contract.

Feeder Cattle futures closed an average of $1.26 higher, from 60¢ higher to $1.77 higher toward the front of the board.

Wholesale beef values were steady on Choice and lower on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 14¢ higher Thursday afternoon at $206.45/cwt. Select was $1.51 lower at $203.79.

Corn futures closed mostly fractionally lower to 1¢ lower.

Soybean futures closed 2¢ to 3¢ higher.

*******************************

Major U.S. financial indices softened Thursday, amid reports of a jump in Chinese coronavirus cases and questions about how China is counting diagnosed and confirmed cases.

The Dow Jones Industrial Average closed 128 points lower. The S&P 500 closed 5 points lower. The NASDAQ was down 13 points.

*******************************

“There are a number of factors that indicate that the land market will continue to be steady in 2020,” says Randy Dickhut, senior vice president of real estate operations for Farmers National Company (FNC). “Interest rates are low and are poised to remain so during the foreseeable future and government support through MFP payments will likely continue if Chinese trade issues are not fully resolved. Overall, agriculture is in adequate financial shape, but there are individual and regional concerns.”

FNC analysts add that buyer demand, relative to the supply, needs to continue for prices to maintain the plateau trend of the past few years. In 2019, for instance, they say prices held steady with less than the average supply of agricultural land for sale. 

“Investor interest in cropland increased somewhat in 2019 with several new entities entering the market and also from an increase in purchasing activity by existing institutional investors,” Dickhut says.

With buyers generally more cautious last year, some markets saw a move to private treaty listings or bid sales instead of the traditional public land auction, according to FNC.

Negotiated cash fed cattle trade developed in the Southern Plains Wednesday with live sales at $118-$119/cwt., but mostly $119, which was mostly $2 less than last week.

Southern Plains cattle selling in the weekly Fed Cattle Exchange auction also brought $119. There were 413 head offered; 315 head sold for delivery at 1-9 days.

Even so, Cattle futures finally clawed back some losses amid oversold conditions.

Except for 12¢ and 2¢ lower on either end of the board, Live Cattle futures closed an average of 56¢ higher.

Feeder Cattle futures closed an average of 76¢ higher.

Wholesale beef values were lower on Choice and higher on Select with light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.52 lower Wednesday afternoon at $206.31/cwt. Select was 77¢ higher at $205.30.

Corn futures closed 1¢ to 3¢ higher through Jly ’21 and then mainly unchanged.

Soybean futures closed 2¢ to 7¢ higher through Nov ’20 and then mostly 1¢ to 3¢ lower.

*******************************

Major U.S. financial indices bounced higher Wednesday, buoyed by more reports that the spread of coronavirus is slowing

The Dow Jones Industrial Average closed 275 points higher. The S&P 500 closed 21 points higher. The NASDAQ was up 87 points.

*******************************

Customer transactions at U.S. restaurant chains were up in January, a benefit of milder weather compared to a year ago when extreme weather conditions and above average precipitation hit many areas of the U.S.

For the retail weeks ending January 6 through February 2, total restaurant transactions increased by 2% over same time last year and quick service restaurant (QSR) chains were the primary contributor, according to NPD’s CREST® Performance Alerts, which provides a weekly view of chain-specific transactions and share trends for 73 quick service, fast casual, midscale, and casual dining chains.

“January is historically one of the toughest months for U.S. restaurants and bad weather is usually a contributor,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America.

QSR chains, which represent the bulk of industry transactions, grew transactions by 2% in January following four consecutive weeks of gains compared to the declines experienced last January. However, the full service restaurant segment, which includes casual dining and midscale/family dining chains, experienced transaction declines throughout the month. Customer transactions at casual dining restaurants declined by 4% and midscale/family dining transactions decreased by 2%, according to NPD.

Although too few to trend, negotiated cash fed cattle trade took on a lower feel Tuesday with early live trades in Kansas and Nebraska at $119-$120/cwt., compared to $121 last week.

Cattle futures continued lower, pressured by the softer tone of the cash market.

Live Cattle futures closed an average of $1.11 lower (67¢ to $1.50 lower).

Feeder Cattle futures closed an average of $1.10 lower.

Wholesale beef values were lower on Choice and higher on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.08 lower Tuesday afternoon at $207.83/cwt. Select was 83¢ higher at $204.53.

Corn futures closed mostly 1¢ lower.

Soybean futures closed unchanged to fractionally higher.

*******************************

Major U.S. financial indices paddled in place Tuesday with various reports suggesting the spread of novel coronavirus is slowing.

The Dow Jones Industrial Average closed fractionally lower. The S&P 500 closed 5 points higher. The NASDAQ was up 10 points.

*******************************

The latest World Agricultural Supply and Demand Estimates (WASDE) increased projected beef production for this year by 40 million lbs. compared to the January estimate at 27.48 billion lbs.

“The beef production forecast is raised from the previous month on higher cattle slaughter and heavier cattle weights in the first half of the year. However, the forecasts for second-half beef production is reduced on lower anticipated steer and heifer slaughter in the second half of the year,” explain USDA analysts. “This reflects a smaller number of cattle outside feedlots implied by the Jan. 1 Cattle report which results in lower placements during 2020.”

Total red meat and poultry production was projected 634 million lbs. more at 108.79 billion lbs.

The annual fed steer price (five-area direct) was projected at $117/cwt: $123 for the first quarter; $118 for the second; $112 for the third; $114 for the fourth quarter.

Among other WASDE highlights:

Corn

U.S. corn ending stocks were unchanged from the previous month. The season-average corn price received by producers was also unchanged at $3.85/bu. 

Soybeans

This month’s 2019-20 U.S. soybean outlook is for increased exports and lower ending stocks.

Soybean ending stocks were reduced 50 million bu. to 425 million, partly reflecting increased imports for China.

The U.S. season-average soybean price for 2019-20 was forecast at $8.75/bu., down 25¢, reflecting reported prices to date. The soybean oil price forecast was lowered 0.5¢ to 33.5¢/lb. The soybean meal price forecast was unchanged at $305/short ton.

Negotiated cash fed cattle prices ended last week $1 lower on a live basis at $121/cwt. in the Southern Plains and Nebraska; $121-$122 in the western Corn Belt. Dressed trade was $1-$2 lower at mostly $193.

Softer cash prices, declining wholesale beef values and queasiness over demand from a potentially slowing global economy weighed on Cattle futures to start the week.

Live Cattle futures closed an average of 76¢ lower.

Except for 5¢ and 2¢ higher in the front two contracts, Feeder Cattle futures closed an average of 97¢ lower (12¢ to $1.22 lower).

Wholesale beef values were lower on Choice and steady on Select with light to moderate demand and moderate to heavy offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.21 lower Monday afternoon at $208.91/cwt. Select was 19¢ lower at $203.70.

Corn futures closed narrowly mixed but mostly 1¢ lower.

Soybean futures closed mostly unchanged to fractionally higher.

*******************************

Major U.S. financial indices on Monday regained most or all of what was lost in the previous session, led by tech stocks.

The Dow Jones Industrial Average closed 174 points higher. The S&P 500 closed 24 points higher. The NASDAQ was up 107 points.

*******************************

Folks in the cattle and beef business have plenty of work ahead to correct the consumer misinformation surrounding fake meat.

In an online survey of more than 1,800 consumers, less than half of the respondents understood the labeling term “plant-based beef” was intended to describe an entirely vegetarian or vegan food product.

Approximately one third of surveyed consumers believed that plant-based fake meat products contained at least some real beef in them.

The National Cattlemen’s Beef Association (NCBA) commissioned the survey. Results were released last week.

When asked to evaluate specific product labels and marketing materials from some of the leading plant-based fake beef products currently on the market:

Nearly two-thirds of respondents believed the fake meat products produced by Beyond Meat, Impossible Foods and LightLife contained real beef or some form of animal byproduct.

32% of consumers who were shown a package of Beyond Meat’s “Beyond Burger” plant-based patties (which features a cow icon) told researchers that they thought the patties contained at least small amounts of real meat. It contains no beef.

37% of consumers who were shown a package of Lightlife’s “Gimme Lean”, which features the word “Beef” highlighted in a red box, said the product contained at least some real beef. It contains no beef.

“The fact that so many consumers look at these labels and think that the products include meat or other animal byproducts is a clear sign that the misleading labeling and deceptive marketing practices of plant-based fake meat companies has caused real consumer confusion,” says NCBA past president Jennifer Houston. “Many of these fake-meat products purposely use graphics and words that trade on beef’s good name, and it needs to stop immediately. Consumers rely on names and product packaging to inform their purchasing decisions, and they have a right to know that this information is accurate and not misleading.”

When asked to rank plant-based fake meat versus beef on a host of food attributes:

44% of consumers believed plant-based products were lower in sodium, when leading plant-based fake beef is anywhere between 220 to 620% higher in sodium than the same size serving of real ground beef. Just 24% of respondents correctly identified beef as being lower in sodium.

34% of respondents believed plant-based fake meat to be less processed than genuine beef and another 34% believed fake and real beef products were equivalent on the food processing scale. Scientifically speaking, beef is considered to be an unprocessed or minimally processed food, whereas plant-based fake meat products are classified as an ultra-processed food product.

On the broad category of healthfulness, more than half of consumers believed plant-based meat was better.

“This research is a wake-up call for our industry, the news media, and for federal regulators,” Houston says. “We in the beef industry need to do a better job educating consumers about the fact that beef is a nutrient-rich source of high-quality protein and essential nutrients that can play a key role in any healthy lifestyle. We also need reporters and regulators to understand how many consumers are confused and/or misinformed about exactly what’s in these new plant-based alternatives.”

The Food and Drug Administration (FDA) has the power to prevent this sort of consumer confusion.

Negotiated cash fed cattle trade was yet to fully develop through Friday afternoon but was shaping up lower. Live prices in the Southern Plains were $1 lower than the previous week at $121/cwt. Although too few to trend, early live sales in Nebraska were also $1 lower at $121, while early dressed sales were $1-$2 lower at $193-$195.

The lack of firm cash direction and weaker outside markets helped cap Live Cattle futures and pressure Feeder Cattle as Lean Hogs continued to extend gains.

Except for 5¢ lower in away Feb, Live Cattle futures closed an average of 14¢ higher.

Feeder Cattle futures closed an average of 55¢ lower (7¢ to 92¢ lower).

Wholesale beef values were lower on Choice and sharply lower on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 81¢ lower Friday afternoon at $210.12/cwt. Select was $2.07 lower at $203.89.

Corn futures closed 3¢ to 4¢ higher through May ’21 and then mostly 1¢ higher.

Soybean futures closed unchanged to 1¢ higher through near Jly and then mostly 4¢ lower.

*******************************

Despite stronger U.S. employment numbers than expected, estimates of declining GDP growth in China, due to novel coronavirus, weighed on major U.S. financial indices Friday.

Total non-farm payroll employment rose by 225,000 in January, according to the U.S. Bureau of Labor Statistics. That left the unemployment rate little changed at 3.6%. 

Average hourly earnings for all employees on private non-farm payrolls rose by 7¢ to $28.44. Over the past 12 months, average hourly earnings increased by 3.1%.

The Dow Jones Industrial Average closed 277 points lower. The S&P 500 closed 18 points lower. The NASDAQ was down 51 points.

*******************************

Beef demand is strong and with U.S. cattle numbers plateauing, prices are likely to be stronger in the year ahead as consumers at home and abroad support industry profitability, according to CattleFax, at their 2020 Industry Outlook in San Antonio last week.

“With strong demand for U.S. beef at home and rising demand overseas, the modest increases in supply will be more than offset by a growing consumer appetite for our product,” says Kevin Good, CattleFax Vice President of Industry Relations and Analysis.

Specifically, CattleFax projects the all-fresh retail price 5¢ higher than last year at an average of $5.87/lb. and composite cutout prices $3 higher $222/cwt. 

In terms of cattle prices, Good says CattleFax projects fed steer prices to average $120/cwt. during 2020, which would $3 more than last year. He notes there is downside risk at $108 and resistance at $130.

CattleFax forecasts steer calf prices (550 lbs.) this year $6 higher than last year at an average of $170/cwt., across a range of $155-$180.

As for feeder steer prices (750 lbs.), CattleFax projects an average increase of $6, compared to last year, at an average of $150/cwt., across a range of $140-$160.

Good notes additional supplies of utility cows, the product of several years of aggressive expansion, are likely to challenge the cull cow market. However, he explains, “Increased demand for lean trim and a decline in the availability of imported grass-fed trim from Australia and New Zealand will be supportive of cow prices.” He projects utility cow prices at an average of $65/cwt., ranging from the low $70s to a fall low near $55.

CattleFax anticipates the average bred cow price steady with last year at $1,500.

On the input side of the equation, Mike Murphy, CattleFax Vice President of Research and Risk Management Services predicts acres planted to corn will increase 4 million acres to 94 million acres this year and that soybean acres will increase 7 million acres to reach 83 million acres. He pegs spot corn prices at $3.50-$4.00/bu., which would be 15¢ to 20¢/bu. less than last year, notwithstanding significant weather pressure.

“There is strong demand for our product, but that’s the result of the fact that our business has paid attention to market signals and we’ve been producing a consistent, quality product that has gained a greater piece of that retail dollar. We need to protect that,” says Randy Blach, CattleFax CEO. “We must pay attention to what the consumer is telling us. That means conversations about topics like traceability and sustainability only become more important as time goes on. We have to listen to the consumer and respond with action to meet their needs and demands if we’re going to continue to be successful in a hypercompetitive global protein market.”

Negotiated cash fed cattle trade remained undeveloped through Thursday afternoon.

Despite the lack of cash direction and recent softness, limit-up moves across most Lean Hog contracts helped buoy Cattle futures.

Live Cattle futures closed an average of 48¢ higher. Open interest continued its recent steep decline with 61,318 fewer contracts (-15.3%) between Jan. 21 and Feb. 5.

Feeder Cattle futures closed an average of 93¢ higher (22¢ to $1.52. higher).

Wholesale beef values were steady on Choice and lower on Select with light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 21¢ higher Thursday afternoon at $210.93/cwt. Select was $1.98 lower at $205.96.

Corn futures closed mostly 1¢ to 3¢ lower.

Soybean futures closed 1¢ to 2¢ lower.

*******************************

Major U.S. financial indices extended gains on Thursday, buoyed by cooling fears about the impact of novel coronavirus and reports of China’s announcement it will halve tariffs on $75 billion worth of U.S. imports, as part of the phase-one trade agreement.

The Dow Jones Industrial Average closed 88 points higher. The S&P 500 closed 11 points higher. The NASDAQ was up 63 points.

*******************************

U.S. beef exports last year totaled 1.32 million metric tons (mt), 2.5% below the previous year’s record volume, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef export value was 3% less at $8.1 billion. Beef export value per head of fed slaughter last year was $309.75, down 4%.

USMEF attributes part of the decline to decreased exports to Japan, borne by the tariff disadvantage of the U.S., compared to its competitors. U.S. beef exports to Japan were 6% less in both volume (311,146 mt) and value ($1.95 billion). Recent ratification of a new trade agreement by the Japanese Parliament should offer some relief. As of Jan. 1, the tariff rate declined from 38.5% to 26.6%, the same as other major competitors, according to USMEF. There will be another rate cut April 1.

“It was gratifying to see beef exports to Japan perform so well in December, given that the first tariff rate cut was pending,” Halstrom says. “Buyers in Japan have been waiting a very long time for tariff relief and have already responded enthusiastically. We look forward to solid growth in 2020 and beyond.”

South Korea made a strong push to become the leading value market for U.S. beef in 2019, finishing a close second to Japan at a record $1.84 billion (up 5% from a year earlier). Korea was also the second largest volume market for U.S. beef at 255,758 mt (up 7%, also a new record). The United States captured a larger share of Korea’s chilled beef imports in 2019 at 62%, up from 58% the previous year. U.S. beef accounted for 51.5% of Korea’s total beef and beef variety meat imports and more than one-third of Korea’s total beef consumption.

“U.S. beef is achieving remarkable success in Korea’s traditional retail and foodservice sectors and is well-positioned to capitalize on growth in e-commerce, the institutional sector and other emerging sales channels,” Halstrom explains. “As U.S. beef moves steadily toward duty-free status in Korea, it becomes accessible and affordable for a wider range of customers whose appetite for U.S. beef continues to grow. We are seeing many new menu concepts in this dynamic market and continued excitement about U.S. beef.”

Pork Exports Record Large

U.S. pork exports posted new volume and value records in 2019, 10% more than the previous year in volume (2.67 million mt) and 9% higher in value ($6.95 billion).

“Despite retaliatory duties and the other barriers U.S. pork faces in China, exports to the China/Hong Kong region closed 2019 with tremendous momentum,” Halstrom says. “We look forward to continued success in 2020, especially if U.S.-China trade relations continue to trend in a positive direction. The coronavirus situation is certainly concerning and disruptive, but it hasn’t dampened our enthusiasm for the potential this market holds for U.S. red meat.”

Negotiated cash fed cattle trade remained undeveloped through Wednesday afternoon.

There were 627 head offered in the weekly Fed Cattle Exchange auction and no takers.

After hints of early support, Cattle futures trailed lower Wednesday, pressured by the ongoing retreat of open interest in Live Cattle, softer wholesale beef values and the lack of cash direction.

Live Cattle futures closed an average of 69¢ lower.

Feeder Cattle futures closed an average of $1.59 lower.

Wholesale beef values were steady to firm on light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 21¢ lower Wednesday afternoon at $210.72/cwt. Select was 43¢ higher at $207.94.

Corn futures closed mostly 1¢ lower.

Soybean futures closed mostly fractionally higher to 1¢ higher

*******************************

Major U.S. financial indices charged higher Wednesday. Runaway fears over novel coronavirus continued to subside with chatter about development of an effective vaccine. Investors also took heart in positive economic news.

For instance, private-sector, non-farm employment increased by 291,000 jobs from December to January according to the ADP National Employment Report®. That was more than the trade expected.

The Dow Jones Industrial Average closed 483 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 40 points.

*******************************

Today’s Cattle Current is abbreviated, as I’m at the Cattle Industry Convention in San Antonio where the Cattlemen’s College was held Wednesday. Based on sessions I attended, there was lots of focus on sustainability and part of that being the continued evolution of the cattle and beef industries away from commodity production toward specification, value-added production…more tomorrow.