Negotiated cash fed cattle trade was $1 higher in the Southern Plains Wednesday at $97/cwt., according to the Agricultural Marketing Service. Although too few to trend, there were also some live sales in Nebraska at $98 and in the western Corn Belt at $99-$101. Early dressed sales were at $160.
Slaughter steers and heifers also sold steady to $1 higher at Sioux Falls Regional in South Dakota, where 184 head of Choice 2-3 steers weighed an average of 1,475 lbs. and brought an average price of $101.12.
Cash strength helped Cattle futures extend gains Wednesday.
Except for 2¢ lower in the back contract, Live Cattle futures closed an average of 77¢ higher (47¢ to $1.07 higher).
Feeder Cattle futures closed an average of 98¢ higher (25¢ to $1.47 higher), amid extremely light trade.
Wholesale beef prices continue to drag bottom, though. Choice boxed beef cutout value was $1.85 lower Wednesday afternoon at $201.11/cwt. Select was $1.17 higher at $189.49.
Corn futures closed 3¢ to 4¢ lower through May ’21 and then mostly fractionally lower to 1¢ lower.
Soybean futures closed fractionally lower to 5¢ lower though May ’21 and then mostly 1¢ to 3¢ higher.
Major U.S. financial indices closed higher Wednesday. Besides tech stocks bouncing higher, support included the Federal Reserve leaving interest rates unchanged, as expected.
“Weaker demand and significantly lower oil prices are holding down consumer price inflation. Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses,” according to a statement from the Fed. “The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”
The Dow Jones Industrial Average closed 160 points higher. The S&P 500 closed 40 points higher. The NASDAQ closed 140 points higher.
“We want beef to be the protein of choice, and we want the entire U.S. beef industry to be trusted and respected for its commitment to quality, safety, and sustainability,” says Kim Brackett, an Idaho rancher and leader of the Beef Industry Long Range Plan (BILRP) taskforce.
That group unveiled its plan for 2021-2025 at this week’s National Cattlemen’s Beef Association (NCBA) Cattle Industry Summer Business Meeting in Denver. The BILRP—updated every five years since 1995—is a designed to help the beef industry establish a common set of objectives and priorities. It communicates the industry’s strategic direction and provides insight to how the industry can serve its stakeholders by growing beef demand.
“The task force invested many hours, discussing the current state of the industry and what we need to accomplish over the next five years. We feel we’ve established some important priorities and strategies, as well as benchmarks for success that will help keep our industry on track through 2025 and beyond,” Brackett says.
The 2021-2025 Beef Industry Long Range Plan includes the following industry objectives:
- Grow global demand for U.S. beef by promoting beef’s health and nutritional benefits, satisfying flavor and unparalleled safety.
- Improve industry-wide profitability by expanding processing capacity and developing improved value-capture models.
- Intensify efforts in researching, improving, and communicating U.S. beef industry sustainability.
- Make traceability a reality in the U.S. beef industry.
Core strategies and goals to achieve those objectives include:
(core strategy in bold type; sample of goals in italics)
Drive growth in beef exports.
*Grow U.S. beef exports to 17% of U.S. beef production by 2025.
*By 2025, 75% of all cattle producing states are participating in a nationwide animal disease traceability program (e.g. U.S. Cattle Trace).
Grow consumer trust in beef production.
*Grow BQA certifications by a cumulative total of 10% per year and achieve national standardization of the BQA program by 2023.
Develop and implement better business models to improve price discovery and value distribution across all segments.
*Maintain a beef cowherd of 30-31 million with a growth target of 32.0 to 32.5 million head.
*Grow packing capacity by 7% (7,000 head per day) by 2025.
Promote and capitalize on the multiple advantages of beef.
*By 2025, achieve a Wholesale Beef Demand Index of 124.
Improve the business and political climate for beef.
*By 2025, at least 75% of producers will agree that the beef industry is effectively addressing opportunities and challenges in a way that enhances the business climate for beef.
Safeguard and cultivate investment in beef industry research, marketing and innovation.
*Quantify the existing public research funding for beef industry production issues and grow that funding by 25% by 2025.
*Increase national industry program funding for beef marketing, research and promotion efforts to $100 million by 2025.