Kansas City Wheat futures charged higher 47¢ to 53¢ in old-crop contracts. Corn futures closed mostly 1¢ to 2¢ lower, though, and Soybean futures closed 9¢ to 14¢ lower through Sep ‘23.
That helped Cattle futures hold on to most of the previous session’s strong gains.
Feeder Cattle futures closed mixed from an average of 33¢ lower to an average of 25¢ higher.
Live Cattle futures closed unchanged to an average of 47¢ higher, from (2¢ to $1.10 higher).
Wholesale beef prices continued to show signs of the seasonal bloom. Choice Boxed beef cutout value was $2.39 higher Tuesday afternoon at $257.90/cwt. Select was $1.10 lower at $248.84.
Negotiated cash fed cattle trade remained stuck at the gate.
Live prices last week were at $138/cwt. in the Southern Plains and Nebraska and at $138-$140 in the western Corn Belt. Dressed prices were $220 in Nebraska and $219-$222 in the western Corn Belt.
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Major U.S. financial indices closed sharply higher Tuesday, buoyed by declining crude oil prices and a slightly more positive inflation gauge than some expected.
The Producer Price Index (PPI) for final demand rose 0.8% in February, compared to the previous month, but the core PPI — less food, energy and trade services — rose just 0.2%, according to the U.S. Bureau of Labor Statistics.
The Dow Jones Industrial Average closed 599 points higher. The S&P 500 closed 89 points higher. The NASDAQ was up 367 points.
West Texas Intermediate Crude Oil futures on the CME closed $3.83 to $6.57 lower in the front six contracts.
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U.S. beef exports maintained their blistering pace in January, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports for the month totaled 119,066 metric tons (mt), up 13% year over year, while value soared 57% to $1.03 billion. That was the third-highest value total on record — trailing only August and November of last year. Export value per head of fed slaughter set a new record, exceeding $500 for the first time.
“This is a truly remarkable run for U.S. beef exports, and the momentum is not limited to our large Asian markets,” says USMEF President and CEO Dan Halstrom. “Regions such as Central America and the Caribbean contributed significantly to January export growth, and export value made strong gains in the Middle East.”
U.S. pork exports were 16% less year over year in January and value was 14% less at $555.6 million, challenged by China’s recovering domestic production, as well as logistics.
Port congestion and shipping costs, for instance, are weighing on the U.S. pork industry’s ability to serve some markets, according to Halstrom.
“Australia, for example, has been a very reliable destination for U.S. hams for further processing, but shipping raw material to Oceania is becoming cost-prohibitive. The low price of European pork is also impacting demand in other further-processing markets such as Southeast Asia and Taiwan,” Halstrom explains. “This underscores the importance of our Western Hemisphere markets, where the U.S. industry continues to pursue new strategies for increasing pork consumption and expanding demand. It is also a reminder that the U.S. industry must continue to strive for market diversification, so we are well-prepared for shifts in the competitive landscape.”