Negotiated cash fed cattle trade ended up generally $2-$3 lower on a live basis last week at $112-$113/cwt. in the Southern Plains and at $114-$115 in Nebraska and the western Corn Belt. Dressed trade was also $2-$3 lower at $183-$184.
Cattle futures, especially Feeder Cattle, closed sharply lower on Friday. Along with sharp pressure on Lean Hogs, there was likely plenty of trepidation related to the tariffs scheduled to begin on Mexican imports Monday unless negotiators reached a resolution on the illegal immigration issue. Friday night, those tariffs were suspended, according to various reports; no details given.
Live Cattle futures closed an average of $1.16 lower (67¢ to $1.50 lower).
Feeder Cattle futures closed an average of $2.35 lower.
Wholesale beef values were steady on moderate demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 6¢ higher Friday afternoon at $222.31/cwt. Select was 24¢ lower at $206.92. Week to week, Choice was 90¢ lower and Select was down 77¢.
Corn futures closed mostly 2¢ to 4¢ lower.
Soybean futures closed mostly 9¢ to 12 ¢lower.
Major U.S. financial indices closed sharply higher Friday. Apparently, much of the support came from significantly fewer new jobs than expected. Although counterintuitive, the notion is the anemic numbers will help encourage the Fed to cut interest rates.
Total non-farm employment increased by 75,000 in May, compared to the previous month, according to the Employment Situation Summary from the U.S. Bureau of Labor Statistics.
Average hourly earnings for all employees on private nonfarm
payrolls in May increased by 6¢ to $27.83. Over the year, average hourly
earnings are up 3.1%.
The Dow Jones Industrial Average closed 263 points higher. The S&P 500 closed 29 points higher. The NASDAQ was up 126 points.
Although U.S. beef exports continued at a strong pace in April, they faltered from year-earlier levels beneath the weight of ongoing trade issues.
For instance, Dan Halstrom, president and CEO of the U.S. Meat Export Federation (USMEF) explained, “U.S. beef is holding its own in Japan, but the April numbers are telling. With the April 1 rate cut, Australian, Canadian, New Zealand and Mexican beef are now subject to a 26.6% duty while the rate for U.S. beef remains at 38.5%. It is absolutely essential that the U.S. secures an agreement that will level this playing field. U.S. beef’s exceptional growth in Korea is a great example of what’s possible when tariffs are less of an obstacle.”
April U.S. beef exports to Japan were 6% less than the previous year in both volume (24,149 mt) and value; 24,149 metric tons (mt) and $156.8 million, respectively.
Overall, U.S. beef exports totaled 105,241 mt in April, down 5% year over year and export value was down only slightly at $674.2 million, according to data released by USDA and compiled by the USMEF. For January through April, exports were 4% below last year’s record pace in volume (412,547 mt) and 1% lower in value ($2.58 billion).
Beef export value per head of fed slaughter in April averaged $305.61 (down 7% from April 2018). The January-April average was $308.34 per head, down 3% from a year ago.
U.S. pork exports totaled 216,757 mt in April, down 6% from a year earlier. Pork export value of $535.2 million was 8% less. For January-April, pork exports were 6% below last year’s pace in volume (817,025 mt) and were down 12% in value to just over $2 billion.