Cash fed cattle trade remained undeveloped through Thursday afternoon.
Cattle futures drifted higher amid sluggish trade, higher outside markets and help from Lean Hogs at the end of the session.
Live Cattle futures closed an average of 45¢ higher, except for 15¢ lower in the back two contracts.
Feeder Cattle futures closed an average of 48¢ higher.
Wholesale beef values were firm on Choice and weak on Select with moderate demand and light to moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 39¢ higher Thursday afternoon at $216.88/cwt. Select was 34¢ lower at $192.37.
Grain futures were higher, especially soybeans, buoyed by dry weather forecast in the Corn Belt and likely positioning ahead of Monday’s government reports that will provide updates to planted acres.
Corn futures closed mostly 2¢ to 4¢ higher.
Soybean futures closed 12¢ to 16¢ higher.
Major U.S. financial indices closed sharply higher Thursday, led by tech stocks and supported by stronger than expected Chinese exports.
The Dow Jones Industrial Average closed 371 points higher. The S&P 500 closed 54 points higher. The NASDAQ was up 176 points.
An extra dollar invested in Cattlemen’s Beef Promotion and Research Board (CBB) activities returned $11.91 to beef industry profit for 2014-2018, according to independent research conducted by Harry M. Kaiser, a Gellert Family Professor of Applied Economics and Management at Cornell University.
Specifically, the $11.91 is what’s termed the marginal beef-cost ratio (BCR).
Key objectives of the study—An Economic Analysis of the Cattlemen’s Beef Promotion and Research Board Demand-Enhancing Programs—were to:
Measure the impact of CBB demand-enhancing activities on beef demand in the U.S. and in foreign markets.
Compare benefits to costs of CBB activities for producers’ and importers’ investments in the national checkoff program.
Among the conclusions:
Had there not been any domestic CBB demand enhancing activities over the latest 5-year period, (2014-18) total domestic beef demand would have been 14.3% lower than it actually was. CBB’s promotion and research activities increased total domestic beef demand by 12.8 billion lbs. in total, during that time, or 2.6 billion lbs. per year.
Had there not been any CBB export promotion, U.S beef exports would have been 5.5% lower than it was in 2014-18. The study considered eight international markets: Mexico, Japan, South Korea, Taiwan, Hong Kong, China, European Union, and Russia and surrounding regions.