Negotiated cash fed cattle trade continued up north on Wednesday, with live sales in Nebraska $1.50 lower than last week at $105/cwt., and $2-$4 lower in the western Corn Belt at $104-$105. Dressed trade in both regions was $2 lower at mostly $167, according to the Agricultural Marketing Service. Live trade in the Southern Plains so far this week is $1 lower at $105.
After attempted support early in the session, softer cash prices and wonderments about demand pressured Cattle futures lower on Wednesday.
Live Cattle futures closed an average of $1.18 lower.
Except for 22¢ higher in spot Aug, Feeder Cattle futures closed an average of $1.36 lower.
Wholesale beef values continued to gain on Labor Day buying.
Choice boxed beef cutout value was $1.77 higher Wednesday afternoon at $231.45/cwt. Select was $1.85 higher at $214.11.
Corn futures closed mostly fractionally lower.
Soybean futures closed 1¢ to 5¢ higher through Aug ’21 and then mostly 4¢ lower
Major U.S. financial indices closed higher Wednesday, led by tech stocks and positive economic news that included further promising trial results from Moderna, a coronavirus vaccine.
The Dow Jones Industrial Average closed 83 points higher. The S&P 500 closed 35 points higher. The NASDAQ closed 198 points higher.
Get through 2020, and beef exports should increase, according to the new quarterly Outlook for U.S. Agricultural Trade from USDA’s Economic Research Service (ERS).
Beef exports for 2021 are forecast $200 million more than the previous Outlook, with higher volumes more than offsetting a decline in unit values. For this year, ERS pegs U.S. beef exports $500 million less than the previous estimate, on lower volumes and lower prices.
“The outbreak of the global COVID-19 pandemic is forecast to cause the world’s real gross domestic product (GDP) to decline in 2020 for the first time since 2009. While some economists believe the worst of the economic and public health shock has already been observed, with the GDP of many advanced economies falling at annualized nominal rates of greater than 30% during the second quarter of this year, there remains significant uncertainty as to the length and speed of the recovery,” say ERS analysts. “Despite an anticipated recovery in the growth rate for most economies in 2021, real GDP is expected to remain below levels seen before the global pandemic. The economic recovery will depend on public and private efforts to mitigate and contain the pandemic and to efficiently adapt economies to changing conditions.”
Total U.S. agricultural exports in Fiscal Year (FY) 2021 are projected at $140.5 billion, up $5.5 billion from the revised forecast for FY 2020, driven mostly by higher exports of soybeans and corn.