Cattle futures closed narrowly mixed Thursday, retaining most of the previous strong gains, supported by stronger cash fed cattle prices and aggressive slaughter.
Feeder Cattle futures closed 12¢ and 38¢ higher in the front two contracts and then an average of 45¢ lower.
Live Cattle futures closed mixed, from 33¢ lower 28¢ higher.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, live prices are $1 higher in the Texas Panhandle at $136/cwt., $3 higher in Nebraska at $142-$143 and $2 higher in the western Corn Belt at $142-$143. Dressed prices are $3-$4 higher at $225-$226.
Choice Boxed beef cutout value was 64¢ lower through Thursday afternoon at $271.10/cwt. Select was 20¢ higher at $249.61
Corn futures closed narrowly mixed, mostly 1¢ lower to up 3¢ higher.
Soybean futures closed 11¢ to 29¢ higher through Jan ‘23. And then mainly 1¢ to 3¢ higher.
******************************
Major U.S. financial indices closed sharply lower Thursday with selling pressure late in the session. Some of it could have stemmed from positioning ahead of Friday’s Consumer Price Index. Also, initial unemployment insurance claims rose by 27,000 last week — more than the trade expected.
The Dow Jones Industrial Average closed 683 points lower. The S&P 500 closed 98 points lower. The NASDAQ was down 332 points.
******************************
Among the highlights of the recently released Global Beef Quarterly from Rabobank analysts:
“The first signs of softening consumer confidence are apparent in most markets, with wholesale prices for beef coming under pressure even though production costs are higher…We expect ongoing adjustments of consumption and margins in all markets as we head into Q3 2022.”
“Lockdowns in China and biosecurity risks in Indonesia pose notable implications for trade. Lockdowns of major Chinese cities are further constraining beef demand and restricting foodservice sales. As a result, Chinese beef imports dropped in Q1, and we expect them to be down in Q2. Continuation of the lockdowns will impact China’s beef imports for 2022. In Indonesia, official reports of lumpy skin disease (early March) and foot-and-mouth disease (late April) have placed authorities in trading nations – particularly Australia and New Zealand – on high alert.”
“With increased focus on carbon over the last two years, we have seen numerous companies, industries, and governments make commitments around the reduction of greenhouse gases. Most major meat processing companies around the world have a statement on the environment and a commitment to reduce emissions – and in many cases, to reach net-zero emissions – by a specified timeframe. We see the same for major food retail and foodservice companies. Until now, most commitments have not necessarily changed what consumers see. But that is all starting to change as the first movers release climate-neutral products onto shelves.”