Cattle Current Daily—May 13, 2020

Cattle Current Daily—May 13, 2020

Cattle futures closed sharply higher Tuesday, regaining much of what was lost in the previous session. Support included stronger cash fed cattle prices, the ongoing heft of wholesale beef values and perhaps USDA’s latest projections of less total red meat and poultry production this year (see below).

Other than 25¢ lower in the back contract, Live Cattle futures closed an average of $2.66 higher ($1.32 to $4.50 higher).

Feeder Cattle futures closed an average of $2.93 higher ($2.22 higher at the back to $3.65 higher in spot May).

Choice boxed beef cutout value was $6.81 higher Tuesday afternoon at $475.39/cwt. Select was $2.00 lower at $450.97; the first day-to-day decline since Apr. 8.

Corn futures closed fractionally higher to 1¢ higher, except for 2¢ to 5¢ higher in the front three contracts.

Soybean futures closed 2¢ to 3¢ higher in the front four contracts and then mostly fractionally higher to 1¢ higher.

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Major U.S. financial indices closed lower Tuesday, with continued jitters about how reopening the economy will impact the spread of COVID-19.

The Dow Jones Industrial Average closed 457 points lower. The S&P 500 closed 60 points lower. The NASDAQ closed 189 points lower.

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USDA projects beef production at 25.76 billion lbs. this year, according to the latest monthly World Agricultural Supply and Demand Estimates (WASDE). That’s 1.68 billion lbs. less (-6.12%) than the April forecast and would be 1.39 billion lbs. less (-5.12%) than last year.

Even so, WASDE estimates the annual fed steer price (five-area direct) at $104.10/cwt., which is $6.90 less than the April projection. That would be $12.68 less than last year’s average of $116.78. By quarter, USDA pegs the average price in the first quarter at $118.32, at $99 in the second and third quarters and at $100 in the fourth quarter.

Forecast total red meat and poultry production this year of 103.57 billion lbs. is 4.73 billion lbs. less (-4.36%) than the April projection and would be 1.69 billion lbs. less (-1.61%) than in 2019.

Next year, though, USDA projects total beef production (27.49 billion lbs.) and total red meat and poultry production (107.34 billion lbs.) to be higher than in 2019.

2020-05-12T20:01:34-05:00

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