Negotiated cash fed cattle trade got off to a strong start in the north Thursday with live prices $3 higher in Nebraska at $110/cwt. and $3-$4 higher in the western Corn Belt at $108-$110. Dressed prices were $4 higher in Nebraska at $172 and $5-$8 higher in the western Corn Belt at $172.
Cattle futures closed narrowly mixed again Thursday with Feeder Cattle receiving some support from softer grain futures.
Live Cattle futures closed an average of 30¢ lower except for 5¢ higher in Aug.
Feeder Cattle futures closed an average of 47¢ higher, except for 52¢ lower in spot Nov.
Choice boxed beef cutout value was $3.66 higher Thursday afternoon at $226.50/cwt. Select was 22¢ lower at $208.24.
Corn futures closed mostly 4¢ to 9¢ lower through Sep ‘21, and then mostly 1¢ lower.
Soybean futures closed mostly 6¢ to 8¢ lower through Aug ‘21 and then mostly fractionally mixed.
U.S. financial indices closed lower Thursday, amid the resurgence in COVID-19 cases and renewal of stricter safety precautions that will delay economic recovery.
The Dow Jones Industrial Average closed 317 points lower. The S&P 500 down 35 points lower. The NASDAQ was down 76 points.
“Globally, though some recovery has occurred, demand for beef in international destinations continues to be influenced by pandemic responses and safety measures,” says Josh Maples, Extension livestock economist at Mississippi State University. “Beef demand at seated restaurants continues to be impacted, and demand in areas reliant on tourism still faces obstacles. The pace of recovery in international destinations will be key for beef exports moving forward and for the value that beef exports add to cattle production.”
In the latest issue of In the Cattle Markets, Maples explains September U.S. beef exports were stronger year over year to South Korea, Hong Kong, Taiwan and Canada. As well, he points out beef exports to China were the most on record for September, accounting for 5.3% of total U.S. beef export, vastly more than the 1% of exports China accounted for in all of 2019.
But, U.S. beef exports were 5.6% less overall in September, Maples says; down about 6% year to date through September.
“Beef exports to Mexico continued to lag behind the 2019 pace. During September, beef exports to Mexico were about 38% lower than in September 2019 and were 40% lower for the first nine months of 2020 compared to the first 9 months of 2019,” Maples explains. “Exports to Mexico were 14% of total January-September beef exports in 2019; in 2020, that share has dropped to about 9%.”