Cattle futures sagged Thursday with higher Corn futures and lower wholesale beef values helping stall recent momentum. Sharply lower outside markets also clouded optimism.
Feeder Cattle an average of $1.14 lower, from 47¢ lower at the back to $1.92 lower in spot May.
Live Cattle futures closed an average of 73¢ lower, from 12¢ lower to $1.12 lower.
Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, like prices are steady at $140/cwt. in the Southern Plains and at $146 in Nebraska. Prices are $2 lower to $1 higher in Colorado at $142-$146 and $1 higher to $1 lower in the western Corn Belt at $146. Dressed prices are steady in Nebraska at $232 and steady to $2 lower in the western Corn Belt at $230-$232.
Choice Boxed beef cutout value was $4.56 lower Thursday afternoon at $255.18/cwt. Select was $1.87 lower at $245.81.
Net U.S. beef export sales for the week ending April 28 were 14,600 metric tons, according to the weekly U.S. export sales report. That was 28% more than the previous week and 1% more than the prior four-week average. Increases were primarily for Japan, South Korea, Taiwan, China and Canada.
Corn futures closed mostly 1¢ to 3¢ higher. Soybean futures closed mostly 4¢ to 5¢ higher.
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Major U.S. financial indices dropped like the proverbial rock Thursday, following what was apparently a relief rally during the previous session, in the wake of the Fed’s 50-basis point increase in the lending rate. Stocks tied to tech and economic growth led the decline.
Weekly initial unemployment insurance claims were 200,000, according to the U.S. Department of Labor. That was 19,000 more than the previous week and more than expected.
The Dow Jones Industrial Average closed 1,063 points lower. The S&P 500 closed 153 points lower. The NASDAQ was down 647 points.
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U.S. beef exports set another new value record in March, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 126,285 metric tons (mt) in March, up 1% from a year ago, the third most on record, while value climbed 33% to a record $1.07 billion. First-quarter exports increased 6% to 353,852 mt. Value in the first quarter was 41% more than last year at just over $3 billion.
“Global demand for U.S. beef has eclipsed anything I have seen in many years in the meat business,” says Dan Halstrom, USMEF President and CEO. “While this momentum is fueled by mainstay markets such as South Korea, Japan and Taiwan, demand is also very strong in China/Hong Kong and key Latin American markets, while exports to the Middle East have rebounded impressively.”
March beef export value equated to $472.73 per head of fed slaughter, up 36% from a year ago. The first quarter average was $474.10 per head, up 41%. Exports accounted for 14.7% of total March beef production, up from 14.5% a year ago, while the ratio for muscle cuts was steady at 12.7%.
Halstrom cautions that first-quarter results do not fully reflect the impact of recent COVID-19 lockdowns in China that slowed product movement and forced many restaurants to suspend or limit service. These obstacles are likely to have a greater impact on April and May export data. He notes that while beef demand has been very resilient, inflation represents a potential headwind.
“Consumers throughout the world have shown how much they value the quality of U.S. beef, but disposable income is under increasing pressure as they pay more for energy and other daily needs,” Hailstorm says. He adds that pork, beef and lamb exporters continue to face logistical obstacles and delays when moving product overseas. The situation is especially challenging for chilled meat shipments to key Asian markets.