Cattle futures started the session with optimism but eroded as the day wore on with likely pressure from profit taking and lower outside markets.
Live Cattle futures closed an average of 77¢ lower.
Feeder Cattle futures closed an average of $1.23 lower (82¢ to $1.87 lower).
Negotiated cash fed cattle trade was light to moderate on moderate demand in Nebraska through Thursday afternoon, according to the Agricultural Marketing Service. Dressed trade was $2 higher at $224/cwt. Live prices a day earlier were steady to $2 higher at $140.
Trade in the western Corn Belt was limited on light demand. There were a few live sales at $141-$142, but too few to trend. Prices last week were $140 on a live basis and $220-$222 in the beef.
In the Southern Plains, trade was limited on light demand. Live prices a day earlier were at $140.
Choice Boxed beef cutout value was 97¢ lower Thursday afternoon at $274.82/cwt. Select was $3.10 lower at $268.95.
Corn futures closed mostly 3¢ to 5¢ lower.
Soybean futures closed 10¢ to 20¢ lower in the front five contracts and then 5¢ to 15¢ lower.
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Major U.S. financial indices caved Thursday beneath the weight of steeper inflation than expected and fears of more aggressive rate increases by the Fed.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6% in January on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 7.5% before seasonal adjustment. That’s the stoutest 12-month increase since the period ending February 1982.
The Dow Jones Industrial Average closed 526 points lower. The S&P 500 closed 83 points lower. The NASDAQ was down 304 points.
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U.S. beef exports shattered previous volume and value records in 2021, surpassing $10 billion for the first time, according to year-end data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
December beef exports totaled 121,429 metric tons (mt), up 1% from a year earlier, while value climbed 33% to $991.8 million – the third largest month on record. These results pushed 2021 volume to 1.44 million mt, up 15% from a year ago and 7% above the previous record set in 2018. Export value soared to $10.58 billion, up 38% from 2020 and shattering the previous record (2018) by 27%.
“The beef export results are truly remarkable, especially considering the COVID-related obstacles in the global foodservice sector and all the supply-side and logistical challenges faced by the U.S. industry,” says Dan Halstrom, USMEF President. “Obviously, our large Asian markets accounted for much of the growth, but it really takes broad-based global demand to reach these impressive levels. So this success story is not just about Korea, Japan and China – but also a strong performance in Taiwan, excellent growth in Central and South America and a rebound in Mexico and Southeast Asia.”
Beef export value per head of fed slaughter equated to a record $407.22 in 2021, up 35% from the previous year. Exports accounted for 15% of total beef production and 12.8% for muscle cuts only, up significantly from the respective 2020 ratios of 13.5% and 11.3%.
Japan was once again the leading volume destination for U.S. beef exports in 2021 at 320,737 mt, up 5% from 2020 and the second largest of the post-BSE era. Export value climbed 22% to a record $2.376 billion, but finished a close second to South Korea.
Beef exports to Korea, Japan and China/Hong Kong each exceeded $2 billion, setting new volume and value records in Korea and China/Hong Kong and the value record in Japan. Exports also set a new value record in Taiwan and reached new heights in Central America, Colombia and Indonesia. Global exports of U.S. beef variety meat also set a new value record of $1.09 billion, up 24% year-over-year.