Negotiated cash fed cattle trade ended up mostly 50¢ to $1 lower last week at mostly $110/cwt. Dressed sales were $1-$3 lower at mostly $173. The weekly 5-area fed steer price was $1.07 lower week to week on Monday at $109.91 live.
Cattle futures edged lower, but firmed after early-session pressure from last week’s softer cash fed cattle prices. Support included sharply higher wholesale beef prices, reaching their highest levels since June.
Choice boxed beef cutout value was $2.60 higher Monday afternoon at $213.98/cwt. Select was $1.37 higher at $202.29.
Except for unchanged to 7¢ higher in the middle of the board, Live Cattle futures closed an average of 21¢ lower.
Except for 2¢ higher in the back contract, Feeder Cattle futures closed an average of 44¢ lower (5¢ lower to $1.32 lower).
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Major U.S. financial indices extended gains Monday, with a decline in Treasury yields and higher hopes that trade issues between the U.S. and a number of countries will find resolution.
Mergers and acquisition news were also supportive, including news that Tyson Foods will purchase Keystone Foods—a major meat supplier to leading Quick Service restaurants—from Marfrig Global Foods for $2.16 billion.
According to Tom Hayes, president and CEO of Tyson Foods, “…Keystone provides a significant foundation for international growth with its in-country operations, sales and distribution network in high growth markets in the Asia Pacific region, as well as exports to key markets in Europe, the Middle East and Africa.
The Dow Jones Industrial average closed 89 points higher. The S&P 500 closed 6 points higher. The NASDAQ was up 4 points.
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African Swine Fever (AFS) is threatening China’s swine industry, the world’s largest hog population. Three cases have been confirmed so far—in three provinces with a fourth implicated—according to the Swine Health Information Center (SHIC). The first was confirmed Aug. 3 and the latest Aug. 20.
AFS is a highly contagious hemorrhagic disease that affects pigs of all ages, according to the World Organization for Animal Health Organization (WHO).
“With high virulence forms of the virus, ASF is characterized by high fever, loss of appetite, haemorrhages in the skin and internal organs, and death in 2-10 days on average. Mortality rates may be as high as 100%,” according to a WHO fact sheet.
Although some pork production systems in China are similar to those in the U.S., SHIC explains much of domestic consumption in China comes from small production units—family or neighborhood—with pigs fed human food scraps.
“The swine industry has never seen an ASF outbreak in such a production landscape, and control measures are untested,” according to the SHIC Monitoring Report. “The Chinese industry has had difficulties in controlling FMD (Foot and Mouth Disease) and CSF (Classical Swine Fever), and has relied heavily on the use of vaccines. As a vaccine is not available for ASF, the industry is thus reliant on heightened biosecurity, rapid diagnosis, complete isolation, and then elimination of infected pigs and contaminated materials.”