Negotiated cash fed cattle trade in the Texas Panhandle was 50¢ to $1 higher than the previous week on Friday at $117.50-$118.00/cwt.
Nationwide, live trade for the week was mostly $1 more than the previous week at mostly $118/cwt. Dressed trade was steady to unevenly steady at $187-$188.
Cattle futures closed lower on Friday as scattered cash fed cattle trade continued at the week’s higher mark, while wholesale beef values drifted lower.
Choice boxed beef cutout value was $1.55 lower Friday afternoon at $203.61/cwt. Select was 47¢ lower at $197.31.
Except for 22¢ and 17¢ higher at either end of the board, Live Cattle futures closed an average of 48¢ lower (27¢ to 72¢ lower).
Feeder Cattle futures closed an average of 72¢ lower (35¢ to $1.17 lower).
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Stronger than expected employment numbers boosted Major U.S. financial indices on Friday.
Non-farm payroll employment increased by 209,000 in July, according to Friday’s summary from the Bureau of Labor Statistics. The nation’s unemployment rate was little changed at 4.3%.
The Dow Jones Industrial Average closed up 66 points. The S&P 500 closed 4 points higher. The NASDAQ closed 11 points higher.
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“Following a week of price declines in the futures market, the market began to slowly improve last week and was able to recapture about $4 of the previous week’s loss. Thus, cash prices tended to improve as the market progressed from Monday through Friday,” says Andrew P. Griffith, agricultural economist with the University of Tennessee, in his weekly market comments. “What may be of even more interest to producers looking to market feeder cattle in the near term is the fact that September and October feeder cattle futures contract prices are outperforming the August contract. This would indicate prices improving through late summer and early fall, but the market is not expecting prices to make a hasty move to the upside for cattle ready to enter the feedlot. Diligence in watching the market is warranted at this time as favorable pricing opportunities may present them-selves.”
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There are always challenges to building and maintaining international market share for U.S. beef, but one of the most essential—the ability to deliver the product—became more certain with the recent three-year extension of the labor contract covering 29 West Coast ports.
Specifically, according to the U.S. Meat Export Federation (USMEF), the International Longshore and Warehouse Union (ILWU) announced the agreement on Friday. The contract between ILWU and the Pacific Maritime Association (PMA) now runs through June 30, 2022.
“USMEF is pleased that ILWU and PMA pursued this early contract extension, which is a positive development for U.S. exporters and for the entire U.S. economy,” says Philip Seng, USMEF president and CEO. “The severe congestion we saw in the West Coast ports in 2014 and 2015 created major logistical problems for U.S. red meat exporters and prompted some international customers to seek alternative suppliers. The contract extension helps ensure that the United States will continue to live up to its reputation as a reliable red meat supplier. It is very good news for everyone in the supply chain – from farmers and ranchers to processors and traders – and for our customers in key Asian and Latin American markets.”