Although too few to trend, scattered cash fed cattle trade on Wednesday was at softer money, as suspected. A few live sales in Nebraska were reported at $117-$118/cwt., which was $3-$4 less than last week. A few dressed trades in Nebraska and the western Corn Belt were $3 less than the previous week at $187.
Likewise, slaughter steers and heifers sold $1-$2 lower at Sioux Falls Regional in South Dakota.
There were only 657 head offered and no sales in the weekly Fed Cattle Exchange Auction. There were a couple of POs at $117.25 and $117.50.
Cattle futures trended lower again on Wednesday as more signs pointed to funds starting to unwind long positions amid growing market bearishness and the end of the year looming.
Live Cattle futures closed an average of $1.00 lower (52¢ to $1.27 lower).
Feeder Cattle futures closed an average of $1.90 lower ($1.65 to $2.10 lower).
Choice boxed beef cutout value was $2.68 lower on Wednesday afternoon at $206.40/cwt. Select was $2.52 lower at $184.11.
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Major U.S. financial indices closed narrowly mixed and little changed on Wednesday, with plenty of eyes focused on Congress and whether they can pass a spending bill before the current money runs out on Friday.
The Dow Jones Industrial Average closed 39 points lower. The S&P 500 closed fractionally lower. The NASDAQ closed 14 points higher.
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U.S. beef exports are poised to break $7 billion this year for only the second time, according to October export results released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports in October were 5% more in terms of volume (111,287 mt) and 18% more in value ($662 million) compared to the same time a year earlier. For January through October, exports totaled 1.038 million mt, up 9% year over year, with value 16% more at ($5.93 billion). That’s slightly ahead of the record value pace established in 2014.
October beef export value averaged $301.88 per head of fed slaughter, up 12% from a year ago and the highest since December 2016. For January-October, export value averaged $279.85 per head, up 10%.
Japan continued to be the pacesetter for U.S. beef exports in October, with volume climbing 19% from a year ago and value up 23% percent to $147.1 million.
“The U.S. beef industry has really broadened its reach in Japan, expanding the range of cuts offered and the retail and foodservice venues in which they are featured,” says USMEF President and CEO Dan Halstrom. “But USMEF remains concerned about market access barriers in Japan, as we face significantly higher tariffs than our main competitor, Australia, and import safeguards that could hinder further growth.”