Cattle Current Daily—May 5, 2023

Cattle Current Daily—May 5, 2023

Cattle futures firmed Thursday, albeit narrowly mixed, amid negative outside markets, tied to banking and the week’s lower cash fed cattle prices.

Feeder Cattle futures closed an average of 30¢ higher, except for an average of 22¢ lower in two nearby contracts.

Live Cattle futures closed narrowly mixed, from an average of 12¢ lower in the front three contracts to an average of 22¢ higher.

Negotiated cash fed cattle trade was limited on light demand in all regions through Thursday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

So far this week, live prices are $1 lower in the Southern Plains at $172/cwt., $2 lower in Nebraska at $176 and $2-$8 lower in the western Corn Belt at $172-$178. Dressed prices are $2-$5 lower in Nebraska at $281.

Choice boxed beef cutout value was 43¢ higher Thursday afternoon at $309.52/cwt. Select was 37¢ higher at $287.49/cwt.

Net U.S. beef export sales were 20,100 metric tons the week ending April 27, according to the weekly U.S. Export Sales report. That was up noticeably from the previous week and 59% more than the prior four-week average. Increases primarily were for, Japan South Korea, China Taiwan and Mexico.

Wheat futures (KCH) continued higher Thursday — up mostly 12¢ to 14¢ — with follow-through support from worries about renewal of the Black Sea Initiative.

Corn and Soybean futures eased lower on likely profit taking from the previous session’s strong gains and perhaps some positioning ahead of the weekly U.S. Export Sales report.

Corn futures closed mostly 2¢ to 3¢ lower.

Soybean futures closed mostly 3¢ to 6¢ lower.

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Major U.S. financial indices closed lower on Thursday as investors grew more squeamish about regional bank health.

The Dow Jones Industrial Average closed 286 points lower. The S&P 500 closed 29 points lower. The NASDAQ was down 58 points.

West Texas Intermediate Crude Oil futures (CME) closed 4¢ to 18¢ lower through the front six contracts.

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By most every measure, domestic consumer beef demand remains extraordinarily strong in the face of high prices and slowing economic growth.

For instance, in his weekly market comments, Andrew P. Griffith, agricultural economist at the University of Tennessee explains most beef items are trading at or above year-ago wholesale prices levels, while pork and poultry prices are significantly lower.

“Pork loin prices have averaged about 10% lower this year compared to last year while wholesale bacon prices have averaged about 45% lower than a year ago. Similarly, chicken breast prices are about 54% lower than 2022,” Griffith says. “These lower prices for competing meat protein products should put pressure on wholesale beef prices if retail prices decline. Despite none of these products being good substitutes for beef, consumers will notice this big difference if it translates to retail.”

2023-05-04T19:43:47-05:00

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