Although there were too few transactions to trend in any region, early negotiated cash fed cattle sales were at mostly higher prices week to week on Thursday.
There were a few live trades in Kansas at $105/cwt. and a few in the western Corn Belt at $104-$105. Early dressed trades were at $165 in Nebraska and the western Corn Belt.
Cash optimism and another day of higher wholesale beef prices helped Cattle futures extend gains on Thursday.
Live Cattle futures closed an average of 83¢ higher.
Feeder Cattle futures closed an average of 93¢ higher, from 45¢ higher in expiring Sep to $1.20 higher at the back.
Wholesale beef values gained for another day. Choice boxed beef cutout value was $1.61 higher Thursday afternoon at $217.48/cwt. Select was 14¢ higher at $207.74.
The average dressed steer weight of 920 lbs. for the week ending Sept. 12, was 2 lbs. heavier than the previous week and 29 lbs. heavier than the same week last year, according to USDA’s Actual Slaughter Under Federal Inspection report. The average dressed heifer weight of 836 lbs. was 4 lbs. heavier than the prior week and 14 lbs. heavier than a year earlier.
Net U.S. beef export sales for 2020 of 18,000 metric tons were up 26% from the previous week and 36% from the prior four-week average, according to the Weekly U.S. Export Sales report from USDA’s Foreign Agricultural Service, for the week ending Sept. 17. Increases were primarily for Japan, South Korea, China, Taiwan, and Hong Kong.
Corn futures closed mostly 3¢ to 5¢ lower.
Soybean futures closed 12¢ to 16¢ lower through Sep ’21 and then fractionally higher to 9¢ lower.
Major U.S. financial indices edged higher Thursday, following the previous session’s selloff.
On the one hand, initial weekly job insurance claims increased by 4,000 week to week to 870,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
On the other, new and existing home sales continue at a blistering pace.
Existing-home sales increased in August for the third consecutive month, according to the National Association of Realtors®. For the month, total existing-home completed transactions rose 2.4% from July. Through July, existing home sales were 10.5% higher year over year.
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” says Lawrence Yun, NAR’s chief economist. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
As for new home sales, they were 4.8% higher from July to August and 43.2% higher year over year.
The Dow Jones Industrial Average closed 52 points higher. The S&P 500 closed 9 points higher. The NASDAQ closed 39 points higher.
Income growth, reduced trade barriers and technological advancements are driving the increase in global value chains, transforming markets and trade processes, linking farmers to traders and consumers across regions and countries. That’s according to a new report from the Food and Agriculture Organization of the United Nations (FAO).
The State of Agricultural Commodity Markets, 2020 (SOCO 2020) argues that global trade and well-functioning markets lie at the heart of the development process as they can spur inclusive economic growth and sustainable development, and strengthen resilience to shocks.
Global agri-food trade more than doubled since 1995, amounting to $1.5 trillion in 2018, with emerging and developing countries’ exports on the rise and accounting for over one-third of the world’s total, according to the report.
Technological progress, urbanization, population and income growth, lower transport costs, trade policies and a decline in average import tariffs are driving the growth.
“We need to rely on markets as an integral part of the global food system. This is all the more important in the face of major disruptions, whether they come from COVID-19, locust outbreaks or climate change,” according to FAO Director-General QU Dongyu in his introduction to the report.
The report estimates that about one-third of global agricultural and food exports are traded within a global value chain and cross borders at least twice.
Among the report highlights:
Upper and lower middle income countries, together, increased their share in global agri-food exports from about 25% in 2001 to 36% in 2018.
Although global agri-food trade doubled since 1995 in real value, its growth rate slowed since the 2008 financial crisis. This is expected to be further impacted by the COVID-19 pandemic.
Digital technologies are transforming all stages of the food value chain from farm to table. They improve efficiency, create jobs and save resources. But it is difficult to foresee all the impacts technological innovation can have on how food is grown, processed, traded and consumed.
While countries in Europe and Central Asia, and East Asia and the Pacific tend to trade within the same regions, countries in South Asia, Latin America and the Caribbean, sub-Saharan Africa, North America, and the Middle East and North Africa trade more globally.