Cattle futures continued higher Tuesday, supported by further downward correction in Corn futures and another day of higher wholesale beef values.
Feeder Cattle futures closed an average of 70¢ higher.
Live Cattle futures closed an average of 47¢ higher, except for $2.50 higher in expiring Feb.
Choice boxed beef cutout value was 61¢ higher Tuesday afternoon at 288.95/cwt. Select was even at $279.25/cwt.
Negotiated cash fed cattle trade ranged from limited on very light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service. There were a few early live trades in the western Corn Belt at $165/cwt., but too few to trend.
Last week, live prices were mostly at $164/cwt. in all regions, which was $2 higher in the Southern Plains, $3-$4 higher in Nebraska and $2-$4 higher in the western Corn Belt. Dressed prices were $3 higher in Nebraska at $260 and $3-$5 higher in the western Corn belt at $260-$262.
Erosion in grain and Soybean futures continued Tuesday as it appears export demand concerns and the promising domestic production outlook have funds on the defensive.
Corn futures closed 11¢ to 13¢ lower through old crop contracts, and then mostly 6¢ lower.
KC HRW Wheat closed 2¢ to 7¢ lower through Jly ‘24 and then mostly 6¢ higher.
Soybean futures closed mostly 22¢ to 32¢ lower through Aug ’24 and then 17¢ to 19¢ lower.
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Major U.S. financial indices closed lower Tuesday as traders closed out the month. Rising bond yield rates applied pressure.
The Dow Jones Industrial Average closed 222 points lower. The S&P 500 closed 12 points lower. The NASDAQ was down 11 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.13 to $1.38 higher through the front six contracts.
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The National Cattlemen’s Beef Association (NCBA) is calling on Secretary of Agriculture Tom Vilsack to take immediate action to indefinitely suspend beef imports from Brazil until that nation makes systemic reforms and takes necessary steps to restore confidence in the nation’s ability to participate in the global beef supply.
The move is based on Brazil’s delayed reporting of confirmation of another case of atypical bovine spongiform encephalopathy (BSE) to the World Animal Organization for Animal Health (WOAH). According to the report, 35 days elapsed between when the case was first identified on Jan. 18, 2023, and the date it was confirmed on Feb. 22, 2023.
It’s not the first time Brazil failed to report BSE confirmation in a timely manner.
NCBA representatives say the unacceptable delay is in clear violation of WOAH reporting requirements.
“We have seen Brazil repeatedly fail to meet the 24-hour requirement for reporting of animal diseases listed by WOAH. In order to protect the safety and security of the U.S. herd, and American cattle producers, we demand USDA take immediate steps to block further beef imports from Brazil,” says NCBA president and South Dakota cattleman Todd Wilkinson. “Furthermore, we expect USDA to keep the border closed to Brazil until they can demonstrate that they are willing and able to play by the trade rules that govern all other nations. If they can’t play by the rules, they don’t deserve access. Secretary Vilsack needs to act now, rather than kicking the can down the road.”
On Monday, NCBA sent a letter to USDA, demanding immediate action. NCBA is also supportive of bipartisan Senate legislation to suspend Brazilian beef imports pending a review of Brazil’s standards.