Cattle Current Daily-Feb. 4, 2019

Cattle Current Daily-Feb. 4, 2019

Negotiated cash fed cattle trade was undeveloped through Friday afternoon, based on USDA reports, though expectations were for steady to higher prices.

Cattle futures closed narrowly mixed, following the previous session’s correction.

Except for 2¢ lower in near Apr, Live Cattle futures closed an average of 32¢ higher.

Except for $1.35 lower in the back contract and 15¢ higher in Nov, Feeder Cattle futures closed an average of 19¢ lower.

Corn futures closed mostly 1¢ to 2¢ higher.

Soybean futures closed mostly 1¢ to 2¢ higher.

Wholesale beef values were lower on Choice and steady on Select, with light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.13 lower Friday afternoon at $214.26/cwt. Select was 27¢ higher at $213.15.

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Major U.S. financial indices closed mostly higher Friday, supported by energy stocks and the positive employment outlook.

Total nonfarm payroll employment increased by 304,000 in January, according to the U.S. Bureau of Labor Statistics. The unemployment rate edged up to 4.0%.

Hourly earnings for all employees on private non-farm payrolls in January rose by 3¢ to $27.56, following a 10¢ gain in December. Over the year, average hourly earnings have increased by 85¢, or 3.2%.

The Dow Jones Industrial Average closed 64 points higher. The S&P 500 closed 2 points higher. The NASDAQ was down 17 points.

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Between 1979 and 1998, U.S. consumer beef demand declined by 50%, reminded Randy Blach, CattleFax CEO, at that organization’s annual Outlook Seminar last week.

Since then, demand increased, in part, because the industry increased product quality and consistency. For instance, Blach pointed out the percentage of Choice and Prime cattle increased 50% since 2004 to 79% last year.

“We finally started listening to the consumer and they rewarded us,” Blach says. He explains if beef demand hadn’t grown for the last two decades, fed steer prices today would be $20/cwt. less and steer calf prices would be $50 less.

“We have a changing consumer today. Are we willing to make the next changes to assure we’re providing consumer with what is important to them?” Blach asked. Among growing consumer demands, he cites things such as traceability and verification.

2019-02-03T20:08:52+00:00

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