Negotiated cash fed cattle trade remained undeveloped through Wednesday afternoon.
There were 1,533 offered, but no sales, in the weekly Fed Cattle Exchange auction.
Although expectations remain for steady to higher prices this week, slaughter cattle sold $2-$5 lower at Sioux Falls Regional in South Dakota. Choice 2-3 steers (395 head) brought an average of $100.07/cwt. That’s on the lower end of country trade in the region last week.
Cattle futures continued to exhibit firmness on Wednesday, maintaining and extending recent gains.
Live Cattle futures closed an average of 52¢ higher (15¢ to $1.07 higher).
Feeder Cattle futures closed an average of 89¢ higher (32¢ to $1.05 higher).
Wholesale beef values were lower on Choice and steady on Select with light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 76¢ lower Wednesday afternoon at $214.63/cwt. Select was 17¢ higher at $189.83.
Corn futures closed mostly fractionally higher.
Soybean futures closed 3¢ to 5¢ lower through Jul ’20 and then 1¢ to 2¢ lower.
Major U.S. financial indices closed higher on Wednesday, mostly retracing lost ground from the previous session. Some attributed support to a comment by President Trump suggesting optimism over a trade deal with China.
The Dow Jones Industrial Average closed 162 points higher. The S&P 500 closed 18 points higher. The NASDAQ was up 87 points.
U.S. beef and red meat exports got a shot in the arm yesterday with completion of the previously announced U.S.-Japan Trade Agreement (USJTA).
“This agreement between the United States and Japan is a better deal for the entire U.S. economy, but is a particularly big win for our farmers and ranchers,” says U.S. Secretary of agriculture, Sonny Perdue. “When I visited Japan in May for the G20, I made it clear that the U.S. is Japan’s best customer and we felt that relationship was not reciprocal. This agreement helps level the playing field.”
When implemented, Secretary Perdue says the agreement will enable American producers to compete more effectively with countries that currently have preferential tariffs in the Japanese market.
“With Japan being the largest value destination for U.S. pork and beef exports (combined export value in 2018 was $3.7 billion), there is no market more critical to the profitability and prosperity of the U.S. red meat industry,” explains Dan Halstrom, president and CEO of the U.S. Meat Export Federation. “It is therefore imperative that we achieve a level playing field for U.S. pork and beef in Japan, so that the U.S. industry can further expand its customer base in this increasingly competitive market. Today’s announcement is not only excellent news for U.S. farmers and ranchers, but also for Japanese consumers who will have greater access to U.S. pork and beef products.”
Under the USJTA, Japan committed to provide substantial market access to American food and agricultural products by eliminating tariffs, enacting meaningful tariff reductions, or allowing a specific quantity of imports at a low duty (generally zero), according to Secretary Perdue. Tariff treatment for the products covered in the agreement will match the preferential tariffs Japan provides to countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.