Cattle futures closed narrowly mixed Tuesday with most of the pressure coming toward the front of the board, but remaining channel bound.
After 7¢ higher in spot Dec and then 5¢ to 22¢ lower in the next three contracts, Live Cattle futures closed an average of 44¢ higher.
Other than an average of 26¢ lower in three of the front contracts, Feeder Cattle futures closed an average of 33¢ higher.
Wholesale beef values were steady on moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 11¢ lower Tuesday afternoon at $239.01/cwt. Select was 12¢ lower at $215.47.
Combined, 78.19% of carcasses graded Prime and Choice the week ending Nov. 8, according to the USDA National Steer and Heifer Estimated Grading Percent report. That was the highest level since last May. At 9.89%, Prime was the highest since last March.
Corn futures closed mostly 2¢ to 3¢ higher.
Soybean futures closed mostly fractionally higher to 2¢ higher.
Major U.S. financial indices closed mixed Tuesday. Weaker same-store sales from the likes of Home Depot and Kohl’s appeared to be the primary pressure.
The Dow Jones Industrial Average closed 102 points lower. The S&P 500 closed 1 point lower. The NASDAQ was up 20 points.
“While beef exports (U.S.) are likely to end 2019 with an almost 2% decline, shipments are expected to rebound in 2020 by about 7%, as drought in
competitor Australia reduces its exportable supply at the same time as beef demand continues to expand in Asia,” say analysts with USDA’s Economic Research Service (ERS), in the November Livestock, Dairy and Poultry Outlook.
U.S. beef exports in September were 3% less than a year earlier, according to ERS, with most of the decline coming from shipments to Japan, Hong Kong and Mexico. But, exports were higher year over year to South Korea, Indonesia, China, Philippines, Taiwan and Vietnam.
“Several factors, including increased demand for animal proteins in Asia, changes in trading patterns, and tighter supplies in Australia, positioned the United States to expand its shipments of beef to a number of Asian countries during September,” say ERS analysts.
Net sales of beef to international customers (25,300 mt) for the week ending Nov. 7 were up 92% from the four-week average, according to the most recent Weekly U.S. Export Sales report from USDA’s Foreign Agricultural Service.
Domestically, retail beef demand in the third quarter was the highest since 2015, according to the Meat Demand Index (MDI) calculated by the Livestock Marketing Information Center (LMIC).
“Retail beef demand is currently in an up-cycle after 2008-2013 showed values below 100. Since 2014 the index for the third quarter has ranged from 102 to 110,” say LMIC analysts, in the latest Livestock Monitor.