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.
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.
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.”