Cattle futures continued to soften Friday on the week’s lower cash fed cattle prices and ongoing recession fears.
Pressure could have also included uncertainty regarding the railroad strike set to begin Monday. Ultimately the strike was averted, at least for now, when President Biden signed an executive order Friday, creating a Presidential Emergency Board (PEB). The PEB has 30 days to recommend a resolution. The railroads and the unions then have another 30 days to negotiate a settlement.
Feeder Cattle futures closed an average of $1.29 lower (57¢ to $2.55 lower).
Live Cattle futures closed an average of 64¢ lower.
Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live prices were steady in the Southern Plains at $137/cwt., steady to $4 lower in Nebraska at $144-$145 and $2-$5 in the western Corn Belt at $145. Dressed prices were $2 lower in Nebraska at $230 and $2-$4 lower in the western Corn Belt at $228-$230.
Choice Boxed beef cutout value was $1.16 higher Friday afternoon at $268.91/cwt. Select was 12¢ lower at $241.79/cwt.
Estimated total cattle slaughter last week of 677,000 head was 84,000 head more than the previous holiday-shortened week. Total estimated year-to-date cattle slaughter of 18.2 million head was 211,000 head more (+1.2%) than last year. Estimated year-to-date beef production of 15.0 billion lbs. was 153.5 million lbs. more (+1.0%).
Corn and Soybean futures closed narrowly mixed Friday as traders positioned following the massive selloff earlier in the week.
Corn futures closed mixed from fractionally lower to 2¢ higher through Sep ‘23, and then 1¢ to 2¢ lower.
Soybean futures closed mostly fractionally mixed to 1¢ higher through Sep ‘23 and then 1¢ to 2¢ lower.
Net U.S. beef export sales for the week ending July 7 were a market-year low, down 17% from the previous week and 35% lower than the prior four-week average, according to the U.S. Export Sales report.
Increases were primarily for Japan, Mexico, Canada, China and Taiwan.
Major U.S. financial indices bounced higher Friday, supported by major bank earnings and stronger consumer spending than expected.
Advance estimates of U.S. retail and food services sales for June were 1% more than the previous month — slightly more than expected — and 8.4% more year over year, according to the U.S. Census Bureau. Also, though still near record lows, the University of Michigan Index of Consumer Sentiment rose from 50.0 in June to 51.1 in July.
The Dow Jones Industrial Average closed 658 points higher. The S&P 500 closed 72 points higher. The NASDAQ was up 201 points.
West Texas Intermediate Crude Oil futures on the CME closed $1.51 to $1.81 higher through the front six contracts.
Greenhouse gas (GHG) emissions from U.S. agriculture declined from 2019 to 2020, according to data from USDA’s Economic Research Service (ERS). Agricultural production accounted for 699 metric tons of carbon dioxide equivalent in 2019 versus 670 million metric tons in 2020. Farming and ranching accounted for 11.2 % of U.S. GHG emissions in 2020 (see chart below).
“The Environmental Protection Agency estimated that in 2020 agriculture produced 5.6% (of GHG) as nitrous oxide. 4.2% as methane, 0.8% as on-farm carbon dioxide, and 0.6% emitted indirectly through the electricity that agriculture consumes,” according to ERS. “Emissions come from cropping activities that emit nitrous oxide, such as fertilizer application and manure storage and management, and enteric fermentation (a normal digestive process in animals), which produces methane.”
Industry (excluding agriculture) accounted for most of the nation’s GHG emissions in 2020 (30.3%) followed by transportation (27.3%).