Negotiated cash fed cattle trade was limited on light demand in Nebraska and the Western Corn Belt through Tuesday afternoon, according to the Agricultural Marketing Service. It was at a standstill in the Southern Plains.
Last week, live prices were at $120-$122/cwt. in the Southern Plains and at $124-$126 in the North. Dressed prices were at $197-$198.
Feeder Cattle futures closed an average of $3.03 higher across the board Tuesday, taking advantage of the wide berth opened by Corn futures.
That helped support Live Cattle, despite the decline in wholesale beef prices, in tandem with climbing retail prices that could challenge demand.
Live Cattle futures closed narrowly mixed, from 40¢ higher in spot Aug to 23¢ lower in Dec with the back two contracts unchanged.
Choice boxed beef cutout value was $1.24 higher Tuesday afternoon at $286.68/cwt. Select was $1.10 lower at $263.31
Corn and Soybean futures plunged Tuesday, pressured by a wetter, cooler forecast.
Corn futures closed down between 38¢ and 41¢ lower through the front six contracts.
Soybean futures closed down between 86¢ and 95¢ lower through the front six contracts.
Major U.S. financial indices mostly fell on Tuesday, ending seven consecutive record-high closings. However, NASDAQ closed slightly higher thanks to gains from Amazon.
The Dow Jones Industrial Average closed 209 points lower. The S&P 500 closed 9 points lower. The NASDAQ was down 24 points.
U.S. beef exports shattered volume and value records in May, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork exports also set a value record.
U.S. beef export volume soared to a record 133,440 metric tons (mt) for the month, up 68% from a year ago, while value increased 88% to $904.3 million. May marked the third consecutive monthly value record for beef exports, which had never exceeded $800 million before March 2021. Record-large exports to South Korea, continued growth in China and a strong rebound in Japan and Taiwan were all part of the strong month.
“The outstanding May performance is especially gratifying when you consider where red meat exports stood a year ago,” says USMEF President and CEO Dan Halstrom. “The industry faced unprecedented, COVID-related obstacles at all levels of the supply chain, and a very uncertain international business climate. These challenges are still not behind us, but international demand has been very resilient and the U.S. industry has shown a tremendous commitment to serving its global customers.”
For January through May, exports reached 587,838 mt, up 15% from a year ago, while value increased 22% to $3.84 billion.
Halstrom cautions U.S. labor availability remains a major concern and limitation for the industry, and exporters continue to face significant obstacles when shipping product overseas. Due to the ongoing, fluid impact of COVID-19, foodservice restrictions also continue to affect several key markets where dine-in service is either suspended or subject to capacity limits and shorter hours, and tourism has not yet returned in many countries.
“USMEF remains optimistic that international demand will remain strong in the second half of 2021, but the road ahead is not an easy one,” Halstrom explains. “The U.S. industry must continue to be innovative and aggressive in defending existing market share, while also expanding our customer base by responding to COVID-driven changes in the marketplace and shifts in consumer trends and preferences.”