Cattle futures closed mixed Friday with little added short-term support and plenty of uncertainty.
Feeder Cattle futures closed mixed, from an average of 20¢ lower to an average of 51¢ higher.
Live Cattle futures closed mixed from an average of 24¢ lower to an average of 11¢ higher.
Corn futures closed mostly 1¢ to 2¢ higher.
Kansas City Wheat futures closed 10¢ to 17¢ higher.
Soybean futures closed 22¢ to 25¢ higher through Aug ’23 and then mostly 9¢ to 12¢ higher.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand through Friday afternoon, according to the Agricultural Marketing Service.
For the week, live sales were steady in the Southern Plains at $150/cwt., steady to $1 higher in Nebraska at $152-$153 and steady in the western Corn Belt at $152-$153. Dressed prices were $2 higher in Nebraska at $242 and steady to $2 higher in the western Corn Belt at $240-$242.
Choice Boxed beef cutout value was $1.43 lower Friday afternoon at $263.75/cwt. Select was $1.16 lower at $231.90/cwt.
Total estimated cattle slaughter last week of 667,000 head was 1,000 head fewer than the previous week but 15,000 head more than the same week last year. Year-to-date estimated total cattle slaughter of 27.71 million head was 452,00 head more (+1.6%) than the same time last year. Year-to-date estimated beef production of 23.69 billion lbs. was 338.8 million lbs. more (+1.5%).
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Major U.S. financial indices closed higher Friday, presumably lifted in part by the monthly Employment Situation Summary. While strong, unemployment crept slightly higher, leading some to think it would help the Fed be less aggressive on interest rates.
The Dow Jones Industrial Average closed 401 points higher. The S&P 500 closed 50 points higher. The NASDAQ was up 132 points.
West Texas Intermediate Crude Oil futures (CME) closed $3.53 to $4.44 higher through the front six contracts.
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September beef exports were lower year over year — the first monthly decline in 2022 — but remain on a record pace through the first three quarters of the year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
September beef exports totaled 115,487 metric tons (mt), valued at $890.3 million, down 7% from a year ago in both volume and value. For the first nine months of 2022, beef exports were still 4% above last year at 1.12 million mt. Export value reached $9.12 billion, up 20% and already achieving the second highest total for any calendar year, trailing only the 2021 record ($10.58 billion).
Despite China’s zero-COVID policies that result in travel restrictions and periodic lockdowns in metropolitan areas, September beef exports to China/Hong Kong were still above last year. Shipments also increased year-over-year to the ASEAN region and Caribbean, but declined to Korea, Japan and Taiwan.
While beef exports remain well-positioned to reach new heights in 2022, the September results reflected significant headwinds that have been building for some time.
“Demand for U.S. beef has been extremely resilient, but inflationary pressure on consumers and weakened currencies in key markets have definitely created a more challenging environment,” says Dan Halstrom, U.S. Meat Export Federation president and CEO. “Exports also continue to face logistical challenges, lockdowns in China and mounting inventories in some destinations. Still, it’s hard to view September sales of nearly $900 million as a disappointment, when this would have been an all-time record just 18 months ago. That really drives home what a remarkable year this has been for U.S. beef exports.”