Cattle futures closed higher Monday, supported by the bullish Cattle on Feed report and lower Corn futures.
Feeder Cattle futures closed an average of $1.84 higher.
Live Cattle futures closed an average of 74¢ higher, (45¢ to $1.12 higher).
There was no afternoon report from AMS for negotiated cash fed cattle trade.
Based on the latest available report, FOB live prices last week were $1-$3 lower in the Southern Plains at $177-$179, 50¢ to $3 lower in Nebraska at $185-$187.50 and $2 lower in the western Corn Belt at mainly $186. Dressed delivered prices were $1 lower to $2 higher at $294-$297.
The five-area direct weighted average fed steer price last week was $185.04/cwt. on a live basis, which was 84¢ less than the previous week. The five-area direct steer price in the beef was $1.84 lower at $293.76.
Choice boxed beef cutout value was 55¢ lower Monday afternoon at $315.56/cwt. Select was $1.03 lower at $287.33/cwt.
Positive crop progress and conditions weighed on Corn futures Monday.
Corn futures closed 9¢ to 10¢ lower through Jly ‘24 and then mostly 3¢ lower.
Wheat futures were down 7¢ to 12¢ on harvest pressure.
Soybean futures closed 4¢ to 8¢ higher through Aug ‘24 and then mostly 1¢ higher, supported the hot, dry forecast and export news.
Major U.S. financial indices closed mixed Monday, supported by tech but pressured by increased Treasury-note yields.
The Dow Jones Industrial Average closed 36 points lower. The S&P 500 closed 30 points higher. The NASDAQ was up 206 points.
West Texas Intermediate Crude Oil futures (CME) closed 28¢ to 54¢ lower through the front six contracts.
Beef imports to the U.S. are higher year over year so far, as expected, with declining U.S. production.
Imports in the first half of 2023 totaled nearly 1.9 billion pounds, about 1% more than the same time last year, according to USDA’s Economic Research Service (ERS), in the latest Livestock, Dairy and Poultry Outlook. Cumulative imports from Australia increased 26% from the same period last year. ERS analysts add that Australia’s exports to the world were up 20% year over year as higher production provided more exportable supplies.
Snubbed to a different post, U.S. imports during the first half of this year were 13.3% of total domestic beef disappearance (production + net trade + net stocks), which was slightly higher than the same time last year. Imports for the full year are expected to be 12.8% of total disappearance, compared to an average of 11.7% for 2018-22.
“That percentage is expected to increase to about 13.8% in 2024 as domestic production declines and imports increase,” say ERS analysts.
On the other side of the fence, U.S. beef export value for the first half of this year was the second highest on record, although 19% less year over year.