Negotiated cash fed cattle trade ranged from slow on light demand in the Southern Plains to limited on light demand in other regions through Tuesday afternoon, according to the Agricultural Marketing Service. Although there were too few transactions to trend, early live sales were $3 higher in the Southern Plains at $136/cwt.
Prices last week were at $133 in the Southern Plains, $133-$134 in Nebraska, $132-$135 in Colorado and $132-$134 in the western Corn Belt. Dressed trade was at $210.
Cattle futures continued to gain ground Tuesday with recent cash strength and the likelihood of another step forward this week.
Feeder Cattle futures closed an average of $1.46 higher.
Live Cattle futures closed an average of 68¢ higher, from 37¢ to $1.22 higher.
Choice boxed beef cutout value was 61¢ lower Tuesday afternoon at $278.64/cwt. Select was $1.06 lower at $262.67/cwt.
Major U.S. financial indices closed mixed again Tuesday as bond yields continued to hamper tech stocks.
The Dow Jones Industrial Average closed 194 points higher. The S&P 500 closed 7 points higher. The NASDAQ was down 79 points.
U.S. beef and veal exports are projected at $9.1 billion next year, which would be $428 million more than this year, according to the latest quarterly Outlook for U.S. Agricultural Trade from USDA’s Economic Research Service (ERS) and Foreign Agricultural Service (FAS). The increase is based mostly on expected higher unit values.
Livestock, poultry, and dairy exports are forecast to increase by $1.9 billion to $38.7 billion, with gains across all major commodities except pork.
Total U.S. agricultural exports for 2022 are projected at $175.5 billion, down $2.0 billion from the August forecast, driven by forecast reductions in oilseed and oilseed product exports. If realized, however, the total would be record large.
“The global economic recovery continues to make progress, but with continued disruptions posed by both price pressures and supply issues. Continued supply-chain backlogs and coronavirus (COVID-19) variants have slowed the economic recovery,” say ERS-FAS analysts. “Despite these continued challenges, global employment statistics continue to gain strength, pointing to momentum in the economic recovery through the end of the calendar year. World real gross domestic product (GDP) is projected to increase by 5.9% in 2021, and subsequently increase by 4.9% in 2022.”
ERS-FAS projects U.S. real GDP at 6.0% this year and 5.2% next year.