Cattle Current Daily—March 10, 2023

Cattle Current Daily—March 10, 2023

Cattle futures closed lower Thursday with likely profit taking, the lack of weekly cash fed cattle direction and outside market bearishness.

Feeder Cattle futures closed an average of 90¢ lower.

Live Cattle futures closed an average of 66¢ lower, except for 60¢ higher in the back contract.

Weekly beef export sales offered no support. According to USDA’s weekly U.S. Export Sales report, net U.S. beef export sales for the week ending March 2 were 5,600 metric tons, a marketing-year low. The total was 31% less than the prior week and 67% less than the previous four-week average (see below).

Negotiated cash fed cattle trade got underway in the Texas Panhandle Thursday at steady money of $165/cwt. on slow trade and light demand.

Elsewhere, trade was mostly inactive on light demand with too few transactions to trend, according to the Agricultural Marketing Service.

Last week, live prices were $165/cwt. Dressed prices were $265 in Nebraska and $262-$265 in the western Corn Belt.

Choice boxed beef cutout value was 18¢ lower Thursday afternoon at $284.60/cwt. Select was $2.07 lower at $276.05/cwt.

Corn futures closed 12¢ to 16¢ lower through old-crop contracts. and then mostly 3¢ to 4¢ lower.

KC HRW Wheat closed mostly 18¢ to 22¢ lower.

Soybean futures closed mostly 8¢ to 11¢ lower.

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Major U.S. financial indices closed strongly lower Thursday amid likely positioning ahead of Friday’s monthly federal jobs report, as investors fret strong gains would tip the Fed’s hand toward higher interest rates for longer.

However, weekly initial unemployment insurance claims (week ending March 4) were higher than expected at 211,000, according to the U.S. Department of Labor. That was 21,000 more than the previous week’s revised level.

The Dow Jones Industrial Average closed 543 points lower. The S&P 500 closed 73 points lower. The NASDAQ was down 237 points.

West Texas Intermediate Crude Oil futures (CME) closed 94¢ to 97¢ lower through the front six contracts.

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U.S. beef exports are off to a slower start than the last two record-breaking years, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). January volume fell 15% year-over-year to 100,942 metric tons (mt) valued at $702.3 million (down 32%).

Beef inventories swelled in some key markets near the end of last year, contributing to a challenging environment for U.S. beef, according to USMEF.

January beef exports were down substantially in most Asian destinations compared to the large year-ago totals. The decline was especially sharp in South Korea, where volume dipped 36% to 18,896 mt and value fell 52% to $151.5 million.

However, U.S. beef export shipments increased sharply to Mexico, the Dominican Republic, the Philippines and Africa.

“While beef exports are off to a slow start in 2023, we remain optimistic that post-COVID foodservice demand will strengthen in additional markets as the year progresses,” explains Dan Halstrom, USMEF president and CEO.

January beef exports equated to $331.27 per head of fed slaughter, down 34% from a year ago.

2023-03-09T19:22:19-05:00

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