The overall weighted average of $117.68/cwt. for the weekly Fed Cattle Exchange auction was just 59¢ shy of the previous week’s average. About a third (772 head) sold out of the 2,119 head offered—most for delivery at 1-9 days.
Eventual country trade in Nebraska basically mirrored the pace. Live prices were $1-$3 less than the previous week at mostly $117/cwt. Dressed trade was $2 lower at $188.
Cattle futures were a roller coaster, swinging from early support to mid-session pressure and then mostly back to gains for the day.
Except for $1.12 higher in spot Aug and 2¢ lower at the very back, Live Cattle futures closed an average of 43¢ higher (12¢ to 62¢ higher).
Feeder Cattle futures closed narrowly mixed (15¢ lower to 40¢ higher).
Choice boxed beef cutout value was 55¢ lower Tuesday afternoon at $207.07/cwt. Select was $1.06 lower at $197.87.
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Major U.S. financial indices closed higher on Wednesday, with support including higher oil prices, positive quarterly earnings report and the widely anticipated decision of the Federal Reserve to leave interest rates unchanged following their most recent meeting.
The Dow Jones Industrial Average closed up 97 points at a new record high. The S&P 500 closed fractionally higher. The NASDAQ closed 10 points higher.
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Increased international demand for U.S. hay is changing the face of U.S. production and prices, according to a new report—Foraging for Higher Prices—from Rabobank International RaboResearch Food & Agribusiness (RRFA).
“We’ve seen the top six hay importers – responsible for buying over 95% of U.S. hay exports –increasing their import volumes and paying a premium for higher-quality hay, supporting prices at their current levels. As a result, prices will likely continue moving in an upward trend,” says RRFA Dairy Analyst, James Williamson.
According to the report, seven states (AZ, CA, ID, NV, OR, UT and WA), produce 18% of U.S. hay and nearly 90% of U.S. hay exports.
Moreover, RRFA analysts explain hay production in California declined by 33% since 2008, due to water restrictions.
“Water restrictions aren’t limited to California,” Williamson explains. “Increasing pressure to conserve water resources around the world, specifically in areas such as Saudi Arabia, will continue to drive demand alfalfa and other hay. This is going to be the new normal.”