Cattle Current Daily—Dec. 8, 2023

Cattle Current Daily—Dec. 8, 2023

Cattle futures found support early in Thursday’s session but ended lower with pressure from cash fed cattle prices and wholesale beef values. Export news was also negative with net 2023 sales of 200 metric tons for the week ending Nov. 30. That was a marketing year low, down 98% from the previous week and down 98% from the prior four-week average.

Feeder Cattle futures closed an average of $1.75 lower (57¢ to $2.50 lower), except for 12¢ higher in spot Jan.

Live Cattle futures closed an average of 93¢ lower (62¢ to $1.35 lower).

Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

So far this week, FOB live prices are $3-$4 lower in the Southern Plains at $171/cwt., mostly $3-$4 lower in Nebraska at mainly $171 and $4 lower in the western Corn Belt at $169-$171. Dressed delivered prices are $4-$8 lower in Nebraska at $267-$271 and $4-$5 lower in the western Corn Belt at mostly $270.

Choice boxed beef cutout value was 72¢ lower Thursday afternoon at $289.84/cwt. Select was $1.07 lower at $258.83/cwt.

Grain and soybean futures closed higher with a mix of export news and likely some positioning ahead of Friday’s monthly World Agricultural Supply and Demand Estimates.

Corn futures closed mostly 2¢ to 3¢ higher.

Kansas City Wheat futures closed mostly 3¢ to 11¢ higher.

Soybean futures closed 10¢ to 16¢ higher.

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Major U.S. financial indices closed higher Thursday, led by tech stocks.

Dow 62 points higher. S&P 500 36 points higher and NASDAQ up 193 points.

WTI Crude oil futures on the CME closed 4¢ to 14¢ lower through the front six contracts.

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 Although stronger than the previous month, U.S. beef exports continued lower year over year in October, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports totaled 104,446 metric tons (mt) in October, down 17% from a year ago but 6% more the low volume posted in September. Export value was $836 million, down 11% year-over-year but 5% higher than September. Beef export value equated to $389.90 per head of fed slaughter in October, down 9% from a year ago.

“Economic headwinds in our largest Asian markets continue to weigh on demand, as consumers trade down to lower-priced proteins,” says Dan Halstrom, USMEF President and CEO. “The recovery in Asia’s foodservice sector has been limited, but we remain hopeful that it will accelerate in 2024. Recent efforts to jump-start economic activity in these countries and address weakened currencies could also improve the business climate.”

However, October exports posted significant year-over-year increases in Mexico, Central America, Taiwan, Europe and Africa, but continued to trend lower to Japan, South Korea and China.

January-October exports of U.S. beef reached 1.08 million mt, down 13% from the record pace of 2022, while value fell 17% to $8.32 billion. During the same period, beef export value equated to $395.40 per head of fed slaughter down 14%.

On the pork side of the fence, for the first 10 months of 2023, U.S. exports increased 9% year over year to 2.38 million mt, value was up 6% to $6.66 billion.

2023-12-07T17:37:22-06:00

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