After early pressure, Cattle futures recovered some on last week’s heavy trade and apparent short covering, but still closed mostly lower.
Live Cattle futures closed an average of 47¢ higher in the front four contracts (12¢ to $1.25 higher in spot Jun) and then an average of 20¢ lower.
Other than 10¢ higher and 2¢ higher in the front two contracts, Feeder Cattle futures closed an average of 63¢ lower.
Choice boxed beef cutout value was $1.79 higher Tuesday afternoon at $230.93/cwt. Select was $1.27 lower at $209.93.
******************************
Major U.S. financial indices closed marginally mixed on Tuesday. Key news was President Trump’s announcement to withdraw the U.S. from the Iran nuclear deal and re-impose economic sanctions on that country. Sanctions lifted by the U.S. and other countries when the deal was established in 2015 boosted the Iranian economy, including Iranian oil exports. Though lower yesterday, many analysts attribute a portion of the recent surge in oil prices to the expectation that U.S. sanctions on Iran will decrease global oil supplies.
The Dow Jones Industrial Average closed 2 points higher. The S&P 500 closed fractionally lower. The NASDAQ closed 1 point higher.
******************************
U.S. cattle producers continue to build upon their already-strong track record in areas important to consumers, according to the Cattlemen’s Stewardship Review (CSR) released this week. Those specific areas are animal welfare, beef quality, sustainability and commitment to community.
Funded by the Beef Checkoff, the CSR documents progress made since the benchmark CSR conducted in 2010.
Among the highlights:
87% percent of consumers say that when they make a meal decisionat home, it is important the meal is “extremely safe to eat—90% of cattle producers say they understand their management practices affect the safety and quality of beef (up 3% from 2010). Further, 95% of producers said their management practices are consistent with producing safe food.
More than 100,000 farmers and ranchers are part of the voluntary Beef Quality Assurance program, which influences the health and animal welfare management practices of more than 80% of U.S. cattle.
75% of consumers say it’s important for meat industries to use sound environmental practices—95% of responding producers say conservation of their land is extremely important to them; 88% manage manure and waste in a way that safeguards air and water
62% of consumers feel its important for meat industries to support their local economies—95% of supplies are purchased from the local area in which beef farmers and ranchers live. Nearly half of cattle farmers and ranchers are involved with a youth organization, such as 4-H, FFA, youth sports, or church youth group. More than a third (39%) donate their time to other civic organizations, compared to a national average of 7%.
“Cattlemen and women raise high-quality beef to feed families in the United States and around the globe,” says Kendal Frazier, CEO of the National Cattlemen’s Beef Association. “As the beef community looks to the future, there will be an ongoing focus to not only improve beef as a product and the process in which it’s raised, but also to appreciate and honor the tradition and history associated with this important industry.”