Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.
Live prices last week live prices were at $138-$140/cwt. in the Southern Plains and Colorado; $138-$140 in Nebraska and the western Corn Belt. Dressed prices were $220 in Nebraska and $218-$220 in the western Corn Belt.
Choice boxed beef cutout value was $1.32 lower Monday afternoon at $263.22/cwt., but Select was $1.40 higher at $253.64
Long-term optimism helped boost Live Cattle futures an average of 46¢ higher on Monday.
Feeder Cattle futures closed an average of 84¢ higher (20¢ higher at the back to $1.37 higher). They received a boost from softer Corn futures, which were down on a drop in Soybean futures based on bullish South American production weather.
Corn futures closed 4¢ to 8¢ lower.
Soybean futures closed 18¢ to 23¢ lower through Nov ’22 and then mostly 12¢ to 15¢ lower.
Major U.S. financial indices continued there almost daily seesaw action Monday, to the down side this time. Apparently investors started the week more anxious about everything from inflation to the potential impact of the new COVID variant.
The Dow Jones Industrial Average closed 320 points lower. The S&P 500 closed 45 points lower. The NASDAQ was down 217 points.
“Decreased net cattle imports are adding to declining cattle inventories in the U.S. and generally tighter cattle numbers at the end of the year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Numerous factors, both short term and long term, are affecting the development of live cattle trade in North America.”
According to Peel, factors affecting current live cattle trade include structural development in cattle feeding and packing in Canada and Mexico, drought conditions, feed supplies and prices and exchange rates.
“For the first 10 months of the year, total U.S. cattle imports from Mexico are down 23.4% year over year, following a decrease of 32.4% in October compared to last year,” Peel says. “Cattle imports from Canada are down 9.0% for the year-to-date compared to last year but were up 9.2% percent year over year in the month of October. Total cattle imports are down 18.7% year over through October with the one-month total down 18.5%.”
On the other end of the trade, Peel says U.S. cattle exports increased significantly to Canada and Mexico over the last four years. He explains cattle exports to Canada were 70.7% higher year to date through October. Exports to Mexico, though still relatively small in actual numbers are up 215.2%.
“In total, cattle exports so far in 2021 are up 81.2% year over year, equal to 31.3% of imports, and contributing to a 35.0% decrease in net cattle imports for the first 10 months of the year,” Peel says.