Cattle futures closed lower Wednesday with traders awaiting the week’s cash trade.
Feeder Cattle futures closed an average of $1.25 lower
Live Cattle futures closed an average of $1.41 lower, from $2.20 lower in waning spot Aug to 80¢ lower at the back of the board.
Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
FOB live prices last week were $178-$179/cwt. in the Texas Panhandle, $179 in Kansas, $185 in Nebraska and $182-$187 in the western Corn Belt. Dressed delivered prices were $292 in Nebraska and $292-$295 in the western Corn Belt.
Choice boxed beef cutout value was 75¢ higher Wednesday afternoon at $315.11/cwt. Select was 15¢ lower at $289.53/cwt.
Grain and Soybean futures closed lower Wednesday with likely month-end position squaring.
Corn futures closed mostly 4¢ to 7¢ lower through Jly ‘24 and then 2¢ higher.
KC HRW Wheat closed mostly fractionally lower to 1¢ lower.
Soybean futures closed mostly 3¢ to 5¢ lower.
******************************
Major U.S. financial indices closed higher again Wednesday despite a more dour employment outlook.
Private sector employment increased by 177,000 jobs in August, according to the August ADP® National Employment Report™ produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab (“Stanford Lab”). Job growth was less than expected.
“After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede,” says Nela Richardson, ADP chief economist.
The Dow Jones Industrial Average closed 37 points higher. The S&P 500 closed 17 points higher. The NASDAQ was up 75 points.
West Texas Intermediate Crude Oil futures (CME) closed 26¢ to 47¢ higher through the front six contracts.
******************************
As with any successful program, you can find detractors of the national Beef Checkoff, but it’s hard to oppose what the program accomplishes each year and over time.
Here are a few recent examples.
*With consumers making more shopping decisions online, e-commerce efforts are essential to driving beef sales. National e-commerce campaigns during the holidays and summer grilling months helped put beef front and center for consumers shopping online. These e-commerce campaigns delivered impressive results, generating more than $22 million in incremental beef sales and reaching nearly 16 million households.
*Research continues to serve as the foundation for all Beef Checkoff-funded initiatives. Nutrition research provides proof that beef has a role in a healthy, sustainable diet. Current projects focus on human clinical trials investigating healthy diets, across the lifespan, where beef is the primary source of dietary protein, and focuses on the impact of cardiometabolic health, strength, and performance, and the benefits of beef in the diets of children and adolescents.
*The National Beef Quality Audit (NBQA), conducted approximately every five years since 1991, is foundational research that provides an understanding of what quality means to the various industry sectors, and the value of those quality attributes. This research helps the industry make modifications necessary to increase the value of its products. The findings from the 2022 NBQA serve to improve quality, minimize economic loss, and aid in advancements in producer education for the U.S. beef industry.
Results from the 2022 NBQA indicate that the beef cattle industry is producing a high-quality product that consumers want more efficiently and the industry’s primary focus across the supply chain remains food safety. In addition, there was an increase in the frequency of Prime and Choice quality grades, with 7.5% of carcasses grading Prime, the highest since audits began. Market sectors also reported that their companies strive to increase their sustainability, and work with the entire beef supply chain to do so.
*Cow-calf producers, stockers and feedyards implement Beef Quality Assurance (BQA) practices on their operations to produce the highest quality cattle and provide consumers with the best possible eating experience. BQA principles don’t end at the farm gate, and cattle haulers can also become BQA Transportation (BQAT) certified through recently updated modules. Since BQAT began in 2017, more than 32,000 certifications have been completed.