Negotiated cash fed cattle prices continued to gain Wednesday with live prices $1 higher in the Texas Panhandle at $136/cwt., $1-$2 higher in Nebraska at $142-$143 and steady in Colorado at $141. Dressed prices in Nebraska are mostly $3-$4 higher at $225-$226, but a few up to $228. That was on moderate trade and demand, according to the Agricultural Marketing Service.
Trade was limited on moderate demand in the western Corn Belt. So far this week, live prices are steady to $2 higher at $141-$142. Dressed prices in the region last week were $222.
Stronger cash prices helped Cattle futures step higher.
Live Cattle futures closed an average of $2.10 higher, while Feeder Cattle futures closed an average of $2.29 higher.
Choice Boxed beef cutout value was 32¢ higher through Wednesday afternoon at $271.74/cwt. Select was 15¢ lower at $249.41.
Corn futures closed mostly 3¢ to 7¢ higher through new-crop contracts and then 1¢ to 6¢ lower.
Soybean futures closed mostly 9¢ to 18¢ higher.
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Major U.S. financial indices finished lower Wednesday after U.S. crude oil topped $120/barrel – a three-month high. Friday’s consumer price index for May will provide the latest read on inflation.
The Dow Jones Industrial Average closed 269 points lower. The S&P 500 closed 45 points lower. The NASDAQ was down 89 points.
West Texas Intermediate Crude Oil futures on the CME were up an average of $2.55 through the front six contracts.
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U.S. beef exports continued their extraordinary pace in April, topping $1 billion for the third time this year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 124,408 metric tons (mt) in April, up 3% from a year ago and the fifth largest on record. Export value soared 33% to $1.05 billion. Value was second only to the record $1.07 billion in March.
April beef export value equated to $489.59 per head of fed slaughter, up 33% from a year ago and the second highest on record.
Beef exports to Taiwan and the Philippines were record-large in April. Exports increased to Japan, China/Hong Kong, Indonesia, the Middle East and the Caribbean.
“Global demand for U.S. beef continues to overcome enormous obstacles, from inflationary pressure to logistical challenges to the recent lockdowns in some of China’s major metropolitan areas,” says USMEF President and CEO Dan Halstrom. “Most encouraging is that even as beef exports climb to unprecedented levels in our largest Asian markets, demand is strengthening in other regions as well, fueled by a strong rebound in the foodservice sector.”
Halstrom cautioned that April results did not capture the full impact of recent COVID-19 lockdowns in China, some of which continued through May and into early June. The pressure inflation imposes on consumers’ discretionary income and the rising strength of the U.S. dollar versus some key trading partner currencies are also growing headwinds for U.S. red meat exports.
For January through April, beef exports increased 5% from a year ago to 478,260 mt, valued at $4.05 billion (up 38%).
The January-April average was $478.03 per head, up 39%.