Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on light demand through Friday afternoon with too few transactions to trend, according to the Agricultural marketing Service.
For the week, live prices were 50¢ to $1 higher in the Southern Plains at $136/cwt., $2 higher at $140 in Nebraska and at $143-$147 in the western Corn Belt. Dressed prices were $2 higher in Nebraska at $227 and $1-$4 higher in the western Corn Belt at $225-$232.
Cattle futures edged higher Friday, supported by stronger cash prices.
Live Cattle futures closed an average of 24¢ higher.
Feeder Cattle futures closed an average of 37¢ higher, except for 12¢ lower in Mar.
Choice Boxed beef cutout value was $1.66 lower Friday afternoon at $264.62/cwt. Select was $1.68 lower at $238.67/cwt.
Corn and Soybean futures were mixed Friday amid weather speculation and biding time for next week’s USDA yield estimates.
Corn futures closed mostly 3¢ to 8¢ higher.
Soybean futures closed mostly 6¢ to 9¢ lower through Aug ‘23 and then mostly 1¢ to 2¢ lower.
Total estimated cattle slaughter last week of 651,000 head was 18,000 fewer than the previous week but 7,000 head more than the same week last year. Total year-to-date estimated cattle slaughter of 10.1 million head was 238,000 head more (+1.2%) than a year earlier. Total estimated year-to-date beef production of 16.6 billion lbs. was 168.9 million lbs. more (+1.0%) than a year earlier.
The five-area direct weighted average steer price in July was $142.16/cwt. on a live basis. That was 62¢ less than the prior month but $20.13 higher year over year. The average steer price in the beef was $228.25 for July, which was $1.51 less than the previous month but 30.63 higher than the previous year.
******************************
Major U.S. financial indices closed mixed Friday as investors weighed the positive jobs report against further potential monetary tightening by the Federal reserve.
Total non-farm payroll employment rose by 528,000 in July, according to the Employment Situation Summary from the U.S. Bureau of Labor Statistics. The number shattered expectations ahead of the report. The nation’s unemployment rate edged down to 3.5%. Both total non-farm employment and the unemployment rate have returned to their February 2020 pre-pandemic levels. Average hourly earnings for all employees on private non-farm payrolls rose by 15¢ to $32.27.
The Dow Jones Industrial Average closed 76 points higher. The S&P 500 closed 6 points lower. The NASDAQ was down 63 points.
CME WTI Crude Oil futures closed 37¢ to 52¢ higher through the through the front six contracts.
******************************
U.S. beef exports topped $1 billion in June for the fifth time this year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
June beef exports of 130,638 metric tons (mt), were slightly less than the record volume posted in May but were 16% more year-over-year and the fourth largest on record. Export value was $1.05 billion in June, also slightly less than the May record but 31% above last year. For the first half of 2022, beef exports increased 6% from a year ago to 743,904 mt, valued at $6.19 billion (up 33%).
While beef export growth has been largely driven by major Asian markets such as South Korea, China/Hong Kong, Japan and Taiwan, exports are also trending higher to the ASEAN region, the Caribbean, Central America, Europe and the Middle East.
“The first-half performance for U.S. beef exports was nothing short of remarkable, especially considering the growing economic headwinds in many key markets and continued shipping and logistical challenges,” says USMEF President and CEO Dan Halstrom. “The rebound in the global foodservice sector has provided a tremendous lift in 2022, even though it is still far from a full recovery in many Asian and European destinations. We definitely see opportunities for further growth, though inflationary pressure and the stronger U.S. dollar continue to raise concerns about consumer spending power.”
June beef export value averaged $447.45 per head of fed slaughter, up 27% from a year ago. Through June, per-head value averaged $476.98, up 33% from the first half of 2021. Exports accounted for 15.5% of total June beef production and 13.3% for muscle cuts, up significantly from 13.6% and 11.5%, respectively, in June 2021. First-half exports accounted for 15.4% of total production and 13.2% for muscle cuts, up from 14.7% and 12.5%, respectively.