Cattle futures took another strong step higher Thursday, buoyed by another week of significant cash gains.
Feeder Cattle futures closed an average of $2.96 higher, also helped along by a break in Corn futures
Live Cattle futures closed an average of $1.76 higher (85¢ to $2.80 higher) with added support from recently higher wholesale beef prices.
Negotiated cash fed cattle trade ranged from slow to moderate on moderate demand to a standstill through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, live prices are $3-$5 higher in the Texas Panhandle at $170/cwt., $4-$5 higher in Nebraska at $172-$177 and $2-$7 higher in the western Corn Belt at $172-$177. Dressed prices are $5-$8 higher at $275-$280.
Choice boxed beef cutout value was $1.03 higher Thursday afternoon at $289.65/cwt. Select was $1.53 lower at $276.63/cwt.
Corn futures closed 3¢ to 9¢ lower through Jly ‘24, and then mostly fractionally higher, with pressure including a more favorable weather outlook.
KC HRW Wheat closed 1¢ to 3¢ higher through May ‘24 and then mostly fractionally lower to 1¢ lower.
Soybean futures closed 6¢ to 18¢ lower through Jan ‘24 and then mostly 2¢ to 5¢ lower.
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Major U.S. financial indices mostly edged higher Thursday with initial weekly unemployment insurance claims higher than expected, another potential sign of a slowing economy.
The advance figure for seasonally adjusted initial claims was 228,000 the week ending April 1, according to the U.S. Department of Labor. That was 18,000 less than the previous week’s level, which was revised 48,000 higher.
The Dow Jones Industrial Average closed 2 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 91 points.
West Texas Intermediate Crude Oil futures (CME) closed narrowly mixed through the front six contracts, from 10¢ lower to 9¢ higher.
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U.S. beef exports were lower year-over-year in February but improved from the previous month, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 105,057 metric tons (mt ) in February, down 3% from a year ago, while export value dropped 16% to $757.8 million. For the first two months of the year, exports were down 9% from last year’s large volume to just under 206,000 mt, while export value dipped 24% to $1.46 billion. February exports to Japan and South Korea increased slightly from a year ago, though value trended lower. Through February, beef exports trended significantly higher year-over-year to Mexico, the Caribbean, the European Union and South Africa.
“On the beef side, it was encouraging to see a modest rebound compared to January,” says Dan Halstrom USMEF President and CEO. “With Asian markets continuing to ease indoor mask mandates and eliminate travel restrictions, we expect to see a continued boost in restaurant traffic and foodservice demand as the year progresses.”