Growing chatter that wholesale beef values may have finally found the seasonal bottom, significantly more trade and short covering helped Cattle futures rally on Thursday. That’s despite the lower cash fed cattle trade last week and undeveloped trade so far this week.
Except for 27¢ higher in the back contract, Live Cattle futures closed an average of $1.11 higher (65¢ to $1.52 higher).
Feeder Cattle futures closed an average of $2.03 higher ($1.50 to $2.45 higher).
Choice boxed beef cutout value was 80¢ lower Thursday afternoon at $192.13/cwt. Select was 51¢ lower at $190.16.
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Major U.S. financial indices closed narrowly mixed on Thursday.
The Dow Jones Industrial Average closed 22 points lower. The S&P 500 closed fractionally lower. The NASDAQ closed 4 points higher.
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U.S. beef exports in July were among the highest monthly totals on record, according to data from USDA and compiled by the U.S. Meat Export Federation (USMEF).
July beef exports totaled 104,488 metric tons (mt), were 5% more year over year. Export value for the month was 18% more than a year earlier at $623.7 million.
For January through July, exports increased 11% in volume (711,364 mt) and 15% in value ($3.97 billion) compared to the first seven months of last year.
Export value per head of fed slaughter in July averaged $299.21, up more than $35 (or 13%) from a year ago. Through July, per-head export value this year was up 9% to $273.52.
“July was certainly a solid month, especially for beef exports, but these results remind us that the U.S. red meat industry operates in an intensely competitive global environment,” says USMEF CEO Philip Seng. “At a time when some of our most essential trade agreements are under review, we must be mindful of how these agreements have helped make U.S. beef, pork and lamb more readily available and more affordable for millions of global customers, to the benefit of U.S. producers and everyone in the U.S. supply chain.”
Among beef export highlights for the month:
Beef export volume to Japan was most in four years; value was the highest of post-BSE era. Keep in mind that Japan’s frozen beef safeguard was triggered in late July, increasing the duty on frozen beef imports from suppliers without a trade agreement with Japan, including the U.S., from 38.5% to 50%. The impact of the safeguard is not likely to surface until the September export data is available, according to USMEF.
July was the first full month for exports to China, with exports of 137 mt valued at $1.3 million.