Although too few to trend, there were a few trades on Thursday at the upper end of last week’s range: $108/cwt. on a live basis and $172 in the beef.
Cattle futures closed narrowly mixed on Thursday amid sluggish trade and waiting for the week’s cash fed cattle trade to provide some near-term direction.
Live Cattle futures closed 25¢ lower to 40¢ higher.
Feeder Cattle futures closed 22¢ lower to 50¢ higher.
Choice boxed beef cutout value was $1.11 higher Thursday afternoon at $196.41/cwt. Select was 80¢ lower at $189.11.
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Major U.S. financial indices edged higher on Thursday, extending gains from the previous session with continued support from optimism surrounding the tax reform plan announced Wednesday.
The Dow Jones Industrial Average closed 40 points higher. The S&P 500 closed 3 points higher. The NASDAQ closed fractionally higher.
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“Even with very large tonnage being produced, most products (red meat) have continued to flow through marketing chains at a brisk pace and stocks have not increased year-over-year,” say analysts with the Livestock Marketing Information Center, in the latest Livestock Monitor. “As of Aug. 30, frozen beef tonnage was unchanged from 2016, pork dropped 5%, and lamb/mutton was down 11%.”
The data refers to the latest USDA monthly Cold Storage report released last week.
“Frozen products have differing shelf-life before they must be sold,” LMIC analysts explain. “For example, typical industry specification is that that a frozen whole turkey should be sold within about two years, while frozen ground meats require marketing much sooner (e.g. six month or so). At times U.S. cold storage stocks are increasing to support growing tonnage of frozen products being exported. At other times, stocks may build due to surging U.S. imports, like when Australia has a drought. Stocks can also build up when product is difficult to sell.”