Cattle Current Daily—Aug. 26, 2020

Cattle Current Daily—Aug. 26, 2020

Live Cattle futures edged higher Tuesday, as Feeder Cattle firmed, despite a bounce higher in Corn futures.

Except for 7¢ lower in spot Aug, Live Cattle futures closed an average of 68¢ higher, recovering what was lost in the previous session.

Except for 10¢ lower in Apr, Feeder Cattle futures closed an average of 16¢  higher. 

Choice boxed beef cutout value was $2.21 higher Tuesday afternoon at $229.68/cwt. Select was $1.01 higher at $212.26.

Corn and Soybean futures jumped Tuesday with the heat and dryness across the Midwest.

Corn futures closed mostly 8¢ to 9¢ higher through Jly ’21 and then mostly 4¢ to 5¢ higher.

Soybean futures closed mostly 10¢ to 14¢ higher through Sep ’21 and then mostly 8¢ higher.

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Major U.S. financial indices closed mixed Tuesday.

Support included a surge in new home sales.

New residential sales in July totaled 901,000, according to the U.S. Census Bureau. That was 13.9% more than in June and 36.3% more than a year earlier.

On the other hand, pressure included declining consumer sentiment.

Month to month, the Conference Board Consumer Confidence Index® decreased 6.9 points to 84.8 in August.

“Consumer Confidence declined in August for the second consecutive month,” says Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The Present Situation Index decreased sharply, with consumers stating that both business and employment conditions had deteriorated over the past month. Consumers’ optimism about the short-term outlook, and their financial prospects, also declined and continues on a downward path. Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”

The Dow Jones Industrial Average closed 60 points lower. The S&P 500 closed 12 points higher. The NASDAQ closed 86 points higher.

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“Commercial cattle slaughter was 2.918 million head for the month of July, a 0.7% decrease from last year but the second largest monthly slaughter for 2020 behind March (2.922 million head),” according to the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor. “Although cattle slaughter declined marginally from last year, commercial beef production reached its highest level for the year at over 2.4 billion lbs. produced in July, a 2.6% increase over 2019. The growth in beef production is attributable to cattle dressed weights. In July, federally inspected dressed weights were 834 lbs., a 3.5% (28 lb.) increase from a year ago. The backlog of cattle created by the pandemic has led to higher than normal dressed weights which has bolstered beef production.”

On a related note, total pounds of beef in freezers July 31 were 3% more than the previous month but 3% less than the prior year, according to the most recent USDA Cold Storage report.

Frozen pork supplies were slightly less than the previous month, but were 25% less year over year.

Total red meat supplies in cold storage were 1% more than the previous month, but 15% less than a year earlier.

Total frozen poultry supplies were up 4% from the previous month, but were slightly less than a year earlier.

2020-08-26T11:41:36-05:00

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