Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Wednesday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, live prices were $142/cwt. in the Southern Plains and Colorado; $140 in Nebraska and the western Corn Belt. Dressed prices were $220.
The lack of cash direction and lower wholesale beef prices helped pressure Live Cattle futures. They closed an average of 45¢ lower.
Choice boxed beef cutout value was $3.92 lower Wednesday afternoon at $264.11/cwt. Select was $2.59 lower at $253.09.
Feeder Cattle futures stepped lower amid lackluster trade and the absence of cash direction. They closed an average of $1.45 lower.
Corn futures closed mostly fractionally mixed as traders readied for Thursday’s monthly World Agricultural Supply and Demand Estimates.
Soybean futures closed 9¢ to 12¢ higher.
Major U.S. financial indices mainly edged higher Wednesday, as investors appeared to be waiting for more direction from the weekly jobless claims report Thursday and the next read on inflation Friday, in the monthly Consumer Price Index report.
The Dow Jones Industrial Average closed 35 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 100 points.
U.S. beef export value soared in October, up 48% year over year to $956.9 million, the second highest monthly level on record, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef export volume was 7.5% more at 115,709 metric tons (mt).
Through the first 10 months of the year, beef export volume totaled 1.19 million mt, up 17% from a year ago. Export value increased 38% to $8.53 billion, surpassing the full-year record of $8.33 billion established in 2018.
Beef export value per head of fed slaughter equated to $439.46 in October, up 55% from a year ago. The January-October average was $394.14, up 34%.
U.S. pork exports were 7% less year over year in October at 226,206 mt while export value slipped 3.5% to $618.8 million. For January through October, pork exports were slightly higher than the same period last year for volume. Pork export value was 8% higher at $6.84 billion.
“USMEF has always prioritized market diversification, and this is more critical than ever now that the red meat industry faces unprecedented transportation challenges and rising input costs,” says Dan Halstrom, USMEF president and CEO. “Exports (U.S. red meat) will likely reach about $18 billion in 2021, which is a remarkable achievement. While global demand is tremendous and we are cautiously optimistic about further growth in 2022, supply chain pressures are not easy to overcome and are a growing concern for exporters and their international customers.”