Negotiated cash fed cattle trade continued to develop through Friday afternoon at no worse than steady money, according to USDA reports. Early live sales were at $119/cwt. in Nebraska and at $120 in the western Corn Belt. Early dressed sales were steady in the western Corn Belt at $188 and as much as $6 higher in Nebraska at $188-$194. Earlier in the week, live sales were steady in Kansas at $119. The Texas Cattle Feeders Association reported its members selling steers steady at $119 and heifers $1 higher at nearly $119.
Cattle futures closed sharply higher Friday, buoyed by strong demand and anticipation of snugger fed cattle supplies heading into the next quarter. Trader optimism was likely heightened by the phase-one trade agreement between the U.S. and China.
“U.S. pork and beef products have been subject to burdensome retaliatory duties in China since 2018, and this has made it very difficult for the U.S. industry to capitalize on China’s rapidly growing need for high-quality proteins. But long before retaliatory duties entered the picture, non-tariff barriers were a major, persistent obstacle for U.S. exporters looking to expand their business in China,” says Dan Halstrom, president and CEO of the U.S. Meat Export Federation. “China is the world’s largest and fastest-growing destination for imported red meat, and the U.S. industry is excited about the prospects for expanded opportunities in China.”
Live Cattle futures closed an average of $1.42 higher (70¢ to $2.45 higher).
Feeder Cattle futures closed an average of $2.09 higher ($1.42 to $3.12 higher).
Wholesale beef values were firm to higher on moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 64¢ higher Friday afternoon at $216.29/cwt. Select was $1.68 higher at $204.24.
Corn futures closed mostly 2¢ to 3¢ higher through Jly ‘21; and then mostly unchanged.
Soybean futures closed 7¢ to 9¢ higher through Jan. ’21 and then mostly 3¢ to 5¢ higher.