Negotiated cash fed cattle trade was $3-$5 lower last week on a live basis at $115-$117/cwt. in the Southern Plains, $117 in Nebraska and $116-$118 in the western Corn Belt. Dressed prices were $2-$5 lower in the western Corn Belt at $185-$190 and $3-$10 lower in Nebraska at $185-$186.
Oversold conditions and follow-through technical support helped Cattle futures close higher Friday, especially Feeder Cattle.
Live Cattle futures close an average of $1.31 higher (80¢ to $1.80 higher).
Except for 30¢ higher in spot May, Feeder Cattle futures close an average of $2.35 higher.
Wholesale beef values were firm to higher on moderate to fairly good demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 75¢ higher Friday afternoon at $220.31/cwt. Select was 40¢ higher at $208.28.
Corn futures closed 1¢ to 4¢ higher through May ’20, and then mostly fractionally lower to 1¢ lower.
Soybean futures closed 14¢ to 18¢ lower, mostly 16¢-17¢ lower.
Major U.S. financial indices closed lower Friday in a late-session sell-off attributed to reports that trade talks between the U.S. and China are at a standstill.
The Dow Jones Industrial Average closed 98 points lower. The S&P 500 closed 16 points lower. The NASDAQ was down 81 points.
Cattle producers received positive trade news at the end of the week.
U.S. Agriculture Secretary Sonny Perdue announced on Friday that Japan agreed to eliminate longstanding restrictions on U.S. beef exports, including the 30-month cattle age limit.
The U.S. Meat Export Federation (USMEF) estimates removal of the cattle age restriction will increase exports to Japan 7% to 10%, or by $150 million to $200 million per year.
“The ability to use beef from over-30-month cattle will also lower costs for companies exporting processed beef products to Japan,” says Dan Halstrom, USMEF president and CEO. “But for the U.S. industry to fully capitalize on this growth opportunity, U.S. beef needs to be on a level playing field in Japan. So, USMEF is also anxious to see progress in the U.S.-Japan trade negotiations.”
Also on Friday, according to the Office of the United States Trade Representative,
“The United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs for steel and aluminum imports from those countries and for the removal of all retaliatory tariffs imposed on American goods by those countries.”
Those tariffs were a sticking point in completing the U.S.-Mexico-Canada (USMCA) trade agreement.
“Today’s announcement is a big win for American agriculture and the economy as a whole,” says Secretary Perdue. “Canada and Mexico are two of our top three trading partners, and it is my expectation that they will immediately pull back their retaliatory tariffs against our agricultural products. Congress should move swiftly to ratify the USMCA so American farmers can begin to benefit from the agreement.”