Cattle Current Daily-Sept. 26, 2018

Cattle Current Daily-Sept. 26, 2018

Negotiated cash fed cattle trade was light on light to moderate demand in Nebraska and the western Corn Belt through Tuesday afternoon. There were a few live trades in both regions at $110.50/cwt.—steady with last week—but too few to trend.

Live Cattle futures closed an average of 14¢ higher.

Feeder Cattle futures closed an average of 24¢ higher.

Wholesale beef values were weak on light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 43¢ lower Tuesday afternoon at $205.73/cwt. Select was 52¢ lower at $194.87.

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Except mixed for soybeans and wheat, cash bids for grains were higher Tuesday.

“Most of the Midwest is at a standstill in regards to harvest due to precipitation,” explained analysts with the Daily National Grain Market Summary. “The 10-day forecast is calling for more precipitation, which could slow harvest further.” 

Wheat bids were 7¢ lower to 1¢ higher. Soybean bids were ¼¢ lower to 16¾¢ higher. Sorghum bids were 5¾¢ higher. Corn bids were 3¢ lower to 5¼¢ higher.

Corn futures closed mostly 2¢ to 3¢ higher through March’20 and then fractionally higher to 1¢ higher.

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Major U.S. financial indices closed mostly lower on Tuesday. Pressure included more tough trade talk from the White House and higher 10-year Treasury yield.

The Dow Jones Industrial Average closed 69 points lower. The S&P 500 closed 3 points lower. The NASDAQ was up 14 points.

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 “We are entering into a new KORUS (Korea-U.S.) agreement that is a better deal for the entire United States economy, including the agricultural sector,” said Agriculture, Sonny Perdue on Tuesday. “This represents an important improvement in trade relations between our two nations, building on long-standing cooperation we have enjoyed. This agreement adds to the momentum building for President Trump’s approach to trade, which is to stand strong for America’s interests and strike better deals. I am optimistic that the dominoes will continue to fall: KORUS, then a new NAFTA, and new agreements with the European Union, Japan, and, most notably, China. As an avid sportsman, I would say ‘put this one in the bag and keep hunting for more.’”       

“Signing of the revised KORUS agreement (Korea-U.S. trade agreement) is reassuring news for the U.S. beef and pork industries,” said Dan Halstrom, president and CEO of the U.S. Meat Export Federation (USMEF), following Tuesday’s announcement of the agreement. “The market access terms secured in the original KORUS not only helped increase U.S. red meat’s market share in South Korea, but also bolstered consumption by making our beef and pork products more affordable and accessible to Korean consumers.”

The U.S. is the world’s largest beef supplier to Korea and second largest supplier of pork, according to Halstrom.

“U.S. red meat exports to Korea set a record last year of $1.7 billion, up 19% year-over-year and up 69% from 2012, when KORUS entered into force,” Halstom explains. “This trend continues in 2018, with both U.S. beef and pork export value increasing more than 50% percent compared to a year ago. Korea is now the second-largest value market for U.S. beef (after Japan) and fourth largest for U.S. pork (after Japan, Mexico and China/Hong Kong).

The duty rate on U.S. beef has been reduced from 40% to 21.3% and will continue to decline each year until it is eliminated by 2026.

2018-09-25T18:39:34-06:00

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