By late Friday afternoon, cash fed cattle trade remained mostly undeveloped. Although too few transactions to trend, higher money was reported in Nebraska at $114/cwt. on a live basis, which was $2.50-$3.00 higher than the previous week. Early live sales in the western Corn Belt were at $114-$115 ($3-$4 higher); early dressed sales were $4-$6 higher at $182. Late in the day, the Texas Cattle Feeders Association reported its members trading live cattle at $115, which was $5 higher than the previous week.
Expectations for stronger cash trade helped boost Cattle futures Friday, extending the week’s gains.
Live Cattle futures closed an average of $1.44 higher through the front three contracts and then an average of 28¢ higher (7¢ to 62¢ higher).
Feeder Cattle futures closed an average of 69¢ higher (27¢ higher to $1.20 higher in spot Aug).
Boxed beef cutout values were steady on moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 20¢ lower in the afternoon at $226.21/cwt. Select was 23¢ lower at $203.18.
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Major U.S. financial indices closed higher Friday, amid generally positive economic news.
The Dow Jones Industrial Average closed 75 points higher. The S&P 500 closed 8 points higher. The NASDAQ was up 10 points.
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Brazilian interests now own a substantial chunk of the U.S. beef packing business.
That comes with last week’s announcement that Marfrig Global Foods received final authorization for its acquisition of a 51% interest in National Beef Packing Company, LCC. The pending sale was announced in April, with the Brazilian company paying $969 million (U.S.) for the controlling interest.
According to a statement from National Beef at the time, “The operations and management of National Beef will remain unchanged with Tim Klein continuing as National Beef President and Chief Executive Officer upon completion of the transaction. The current owners of National Beef will continue as owners under the new structure.” At the time, Leucadia National Corp. was the majority owner, having acquired a majority interest in National Beef at the end of 2011.
With the sale, Brazilian interests now own a substantial chunk of the U.S. beef packing business.
Brazilian-owned JBS USA is the nation’s second largest beef packer in terms of sales, according to data compiled by CattleFax and presented in Directions statistics from the National Cattlemen’s Beef Association. National is fourth largest in terms of beef sales. Based on net sales (all meats), according to the National Provisioner, JBS was second largest in the U.S. last year, and National Beef was seventh largest (Tyson was largest and Cargill was third largest).