Cattle futures stabilized Wednesday after early pressure and amid strong volume.
Feeder Cattle futures closed an average of $1.52 higher (57¢ to $2.32 higher).
Live Cattle futures closed an average of 82¢ higher (27¢ to $1.05 higher).
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on very light demand through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $185/cwt. in all regions and dressed delivered prices were $292.
Choice boxed beef cutout value was $1.63 lower Wednesday afternoon at $298.75/cwt. Select was $1.55 higher at $271.03/cwt.
Soybean and grain futures closed mainly higher ahead of Thursday’s World Agricultural Supply and Demand Estimates.
Soybean futures closed fractionally higher to 3¢ higher through Jly ’24 and then 1¢ lower.
Corn futures closed mostly 4¢ to 7¢ higher.
KC HRW Wheat closed mostly 18¢ to 22¢ higher.
Major U.S. financial indices closed little changed Wednesday.
The Dow Jones Industrial Average closed 40 points lower. The S&P 500 closed 4 points higher. The NASDAQ was up 10 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.64 to $2.04 lower through the front six contracts with continued pressure from increasing domestic stocks and a weaker demand outlook.
U.S. beef exports continue to decline compared to last year’s record totals but showed increasing strength in Western Hemisphere, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
September beef exports of 98,757 metric tons (mt), were 15% less year over year and the lowest of 2023. Value declined 12% to $795.5 million. Exports were lower to major Asian destinations but gained momentum in Mexico, Canada, Central America, Colombia and Africa.
For January through September, beef exports were 13% below last year’s record pace in volume (980,100 mt) and down 18% in value ($7.49 billion).
“U.S. beef continues to face tough sledding in our Asian markets, where weakness in major currencies persist and consumer confidence remains guarded,” says Dan Halstom, USMEF president and CEO. “In the past few weeks, we have seen several Asian trading partners step up efforts to stimulate their economies and ease pressure on consumers. In the meantime, bright spots for U.S. beef continue to emerge in the Western Hemisphere, led by strong demand in Mexico.”
Beef export value per head of fed slaughter was $398.73 in September, just 2% less than a year earlier. The January-September average of $396.03 was 15% less than the same time last year.
Although U.S. pork export value and volume were slightly less year over year in September, they maintain a strong pace. Through the first three quarters of this year, pork exports increased 9% year-over-year to 2.13 million mt and climbed 7% in value to just under $6 billion.