Cattle futures plumbed lower Friday with continued concerns about Highly Pathogenic Avian Influenza in dairy cattle.
Live Cattle closed an average of $3.08 lower ($2.70 to $3.80 lower).
Feeder Cattle futures closed an average of $4.96 lower ($3.92 to $5.85 lower).
Negotiated cash fed cattle trade ranged from moderate on moderate demand in the Southern Plains to slow on light demand through Friday afternoon, according to the Agricultural Marketing Service.
For the week, FOB live prices were $2 lower in the Texas Panhandle at $184/cwt., $1-$2 lower in Kansas at $183-$184, $2-$3 lower in Nebraska at $187 and $1-$3 lower in the western Corn Belt at $187. Dressed delivered prices were $3-$5 lower in Nebraska at $296-$297 and $2-$3 lower in the western Corn Belt at $297.
Choice boxed beef cutout value was 2¢ higher Friday afternoon at $297.17/cwt. Select was $1.35 lower at $294.70/cwt.
Estimated total cattle slaughter last week of 609,000 head was 23,000 more than the previous week and 4,000 head more than the same week a year earlier. Total estimated year-to-date cattle slaughter of 8.3 million head was 473,000 fewer (-5.4%) year over year. Estimated year-to-date beef production of 7.0 billion pounds was 264.6 million pounds less (-3.7%).
Corn futures closed mostly unchanged to fractionally mixed.
KC HRW Wheat futures closed mostly 3¢ to 6¢ higher.
Soybean futures closed 1¢ to 5¢ higher through Nov ’24 and then mostly 3¢ to 4¢ lower.
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Major U.S. financial indices gained Friday on the bullish employment situation.
Total non-farm employment grew by 303,000 in March, according to the U.S. Bureau of Labor Statistics. That was significantly more than expected. Average hourly earnings for all employees on private non-farm payrolls was 12¢ higher in March at $34.69.
The Dow Jones Industrial Average closed 307 points higher. The S&P 500 closed 57 points higher. The NASDAQ was up 199 points.
West Texas Intermediate Crude Oil futures (CME) closed 16¢ to 32¢ higher through the front six contracts.
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U.S. beef exports continue to gain firmer footing, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports reached 103,883 metric tons (mt) in February, down 1% from a year ago, but export value increased 10% to $830.4 million. January-February exports were down 1% to 203,647 mt, while export value increased 9% to $1.59 billion.
February beef export value equated to $412.79 per head of fed slaughter, up 5% from a year ago. The January-February average was $385.78 per head, which was 7% higher.
“Tight beef supplies are definitely a challenge for exporters, and that situation isn’t going to change anytime soon,” says Dan Halstrom, USMEF president and CEO. “But on a positive note, we are seeing more opportunities for underutilized beef cuts, including the round, shoulder clod and variety meat, in the global marketplace. Demand is strong throughout the Western Hemisphere and the foodservice and hospitality sectors are finally gaining some momentum in key Asian markets such as Korea, where the post-COVID recovery has been slower than anticipated.”
February beef exports to the Caribbean were the largest on record, while demand from Mexico and Central and South America continued to trend higher.
In the other side of the fence, February pork exports increased 14% from a year ago to 250,930 mt, while value jumped 15% to $685.1 million. Through the first two months of 2024, exports increased 10% in both volume (502,354 mt) and value ($1.37 billion).