It took all week, and then some, but cash fed cattle trade ended up moderate on moderate demand in all major cattle feeding regions late on Friday. Prices were steady to $2 higher on a live basis at $108/cwt. in the western Corn belt, to $109 in the Southern Plains, to $110 in Colorado; as high as $110.50 in Nebraska. Dressed trade was steady to $2 higher at $172-$174.
Cattle futures mostly treaded water to start the week, amid sluggish trade tied to Columbus Day, which was a holiday for some.
Except for unchanged in Dec and 2¢ lower in April, Live Cattle futures closed an average of 34¢ higher (7¢ to 55¢ higher).
Feeder Cattle futures closed narrowly mixed but mostly marginally higher (25¢ lower to 25¢ higher).
Choice boxed beef cutout value was 91¢ higher Monday afternoon at $198.13/cwt. Select was $1.43 higher at $188.66.
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Major U.S. financial indices closed marginally lower on Monday as investors positioned ahead of quarterly earnings reports.
The Dow Jones Industrial Average closed 12 points lower. The S&P 500 closed 4 points lower. The NASDAQ closed 10 points lower.
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Net live cattle imports to the United States continue higher year over year, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.
Those imports are feeder cattle and fed cattle from Canada and mainly feeder cattle from Mexico.
“For the year to date, total cattle imports are up 3.9%, with imports from Canada down 16.5% and imports of Mexican cattle up 21.7%,” Peel says. “Canadian feeder cattle imports were down 34.0% through August and slaughter cattle imports were up 9.7%. Slaughter cattle imports from Canada for the year to date consist of 68.8% slaughter steers and heifers and 31.2% slaughter cows and bulls.”
Total feeder cattle imports from Canada and Mexico were up 9.7% for the January through August period, Peel says.
“Year to date, feeder heifer imports from Mexico have more than doubled from last year with heifers making up 15.3% of feeder cattle imports from Mexico,” Peel explains. “Increased heifer imports from Mexico may be a reflection of stronger domestic Mexican demand for steers to support growing feedlot production in Mexico, leaving heifers to make up a bigger share of cattle exports. It may also signal slowing heifer retention and herd growth in Mexico as heifer exports compete with domestic breeding demand for heifers.”
Steers imported from Mexico are up 13.6% year over year through August, Peel says.