Hopes grew Thursday for higher weekly cash fed cattle prices as Cattle futures, especially Feeder Cattle, climbed higher, apparently on the backs of non-commercial traders’ continued positioning ahead of support that could come with a U.S.-China trade deal. The next round of winter predicted to hit cattle feeding areas later this week was likely also supportive.
Live Cattle futures closed an average of 71¢ higher.
Feeder Cattle futures closed an average of $1.49 higher.
Wholesale beef values were lower on Choice and firm on Select with light to moderate demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.42 lower Thursday afternoon at $210.15/cwt. Select was 61¢ higher at $205.25.
Corn futures closed mostly fractionally higher to 1¢ higher.
Soybean futures closed mostly 1¢ higher.
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Major U.S. financial indices closed higher Thursday with mounting optimism about the phase-one trade deal between the U.S. and China, as well as reports of strong holiday retail sales.
The Dow Jones Industrial Average closed 105 points higher. The S&P 500 closed 16 points higher. The NASDAQ was up 69 points.
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Frozen beef supplies continue to trend lower year over year, according to USDA’s latest monthly Cold Storage report.
Total beef in cold storage Nov. 30 was 480.38 million lbs., which was 3% more than the previous month but 7% less than a year earlier.
Total frozen pork supplies were record large for the month of November at 574.86 million lbs., which was 6% less than the previous month but 13% more than a year earlier.
Total red meat supplies in freezers were 2% less than the previous month, but 2% more than the prior year.
Total frozen poultry supplies were 10% less than the previous month, but 1% more than last year.