Cattle futures continued sharply higher on Thursday for the second day in a row. The surge, coupled with heavy volume in Live Cattle the previous day, increases hopes that a near-term bottom was established earlier this week.
Live Cattle futures closed an average of $1.65 higher (67¢ to $2.72 higher.
Feeder Cattle futures closed an average of $2.36 higher ($1.77 to $2.97 higher).
Choice boxed beef cutout value was $3.08 lower Thursday afternoon at $215.09/cwt. Select was 13¢ higher at $206.31.
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Major U.S. financial indices closed sharply higher again on Thursday, bouncing back further from aggressive pressure earlier in the week, tied to the brewing trade war with China.
The Dow Jones Industrial Average closed 240 points higher. The S&P 500 closed 18 points higher. The NASDAQ closed 34 points higher.
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Levi Russell, an agricultural economist at the University of Georgia provides some year-over-year market perspective, in light of recent pressure exerted on calf and feeder prices by fewer than expected corn acres.
“At this time last year, we were seeing a typical spring rally thanks to several factors,” Russell says, in the latest issue of In the Cattle Markets. “Demand was quite strong and was offsetting increases in beef production. Supply fundamentals across all proteins were bearish, but both domestic and export demand were strong enough to keep prices moving higher. Additionally, the prospective plantings report was bearish for corn, which was good news for feedlot demand. Time will tell whether export demand (which has been strong) and domestic demand (which is increasingly tied to consumers’ incomes) will buoy prices into grilling season.”