Cattle Current Daily—Aug. 5, 2021

Cattle Current Daily—Aug. 5, 2021

Negotiated cash fed cattle prices leaned higher Wednesday: $1 higher in Kansas at $121/cwt. on a live basis; steady to $1 higher in Nebraska at $125 (compared to Tuesday); steady with the previous day at $125 in the Western Corn Belt. Although too few to trend, live prices in the Texas Panhandle were $2 higher at $122. Dressed trade was $2 higher in Nebraska at $198. All of that was on slow trade with light to moderate demand.

Stronger cash prices and surging wholesale beef values provided support for Cattle futures Wednesday.

Live Cattle futures closed an average of 55¢ higher.

Feeder Cattle futures closed an average of 42¢ higher.

Through mid session today, limit-down moves in Lean Hogs are weighing on Live Cattle, while a bounce in Corn futures is pressuring Feeder Cattle.

Corn futures closed mixed mixed Wednesday, down 4¢ to 5¢ through new-crop contracts and then mostly fractionally higher.

Soybean futures closed 5¢ to 11¢ higher through Jul ’22 and then 4¢ higher.

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Major U.S. financial indices closed mixed on Wednesday as investors speculate about the Federal Reserve tapering stimulus support.

The Dow Jones Industrial Average closed 324 points lower at 34,793. The S&P 500 closed 21 points lower. The NASDAQ was down 19 points. 

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“My farm gains from red meat exports in the price of every acre of crops that we grow,” says Dean Meyer, who produces corn, soybeans, cattle and hogs near Rock Rapids, Iowa. “Red meat exports are vital to my family’s operation.”

Myer was speaking about a recent study conducted by World Perspectives, Inc. and released by the U.S. Meat Export Federation (USMEF), indicating U.S. beef and pork exports added 41¢/bu. to the value of corn and $1.06/bu. to soybeans in 2020.

Corn and soybean producers support the international promotion of U.S. pork, beef and lamb by investing a portion of their checkoff dollars in market development efforts conducted by USMEF. This funding is leveraged with support from pork and beef checkoff programs and USDA.

Meyer also highlights the industry-wide collaboration behind the promotion of value-added U.S. red meat in international markets. “Something else this study points to is how different sectors of U.S. agriculture can work together to benefit the industry as a whole.” With such collaboration, Meyer adds, “there is great potential for U.S. agriculture on the world stage.”

Key findings from the study, based on 2020 export data:

Beef and pork exports used 530.5 million bu. of corn. At an average annual price of $3.52/bu., beef and pork exports accounted for $1.87 billion in market value to the corn industry.

U.S. pork exports used 2.45 million tons of soybean meal, which is the equivalent of 103.2 million bu. of soybeans. At an average annual price of $8.98/bu., pork exports accounted for $927 million in market value to the soybean industry.

Beef and pork exports also used 3.03 million tons of distiller’s dried grains with solubles (DDGS) at an annual average price of $154.59/ton, generating $468 million in market value for ethanol mills’ co-products.

“USMEF’s efforts to promote U.S. red meat in international markets have paid off for producers, whether they raise livestock or grow corn and soybeans – or, like me, they do both,” says Mark Legan, a hog farmer from Coatesville, Ind. “The study adds numbers to the story – a story those of us in this business have been telling for a long time – that global trade is vital to all of us involved in U.S. agriculture.”

2021-08-05T12:58:14-06:00

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