Weekend reports of a spike in novel coronavirus cases outside of China sent major U.S. financial indices and futures markets tumbling as investors and traders try to assess the current and potential impact on global economic growth.
Cattle futures plummeted mostly limit-down in Feeder Cattle and near limit-down in Live Cattle. Friday’s announcement that USDA is restoring access to the U.S. for Brazilian beef likely added to the weight.
Live Cattle futures closed an average of $2.72 lower.
Feeder Cattle futures closed an average of $4.26 lower.
Growing pessimism prompted some early negotiated cash fed cattle trade in Nebraska and the western Corn Belt at $187/cwt. in the beef, which was $3 less than last week, but there were too few transactions to establish a trend.
Wholesale beef values were higher on Choice and firm on Select, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.98 higher Monday afternoon at $207.07/cwt. Select was 67¢ higher at $202.37.
Corn futures closed 3¢ to 4¢ lower through Jly ’21 and then mostly fractionally lower to 1¢ lower.
Soybean futures closed 11¢ to 16¢ lower through Jan ’21 and then 5¢ to 9¢ lower.
Major U.S. financial indices plunged lower Monday, with surging coronavirus cases reported outside China over the weekend and some analysts shaving a full 1% from expected first-quarter GDP growth.
The Dow Jones Industrial Average closed 1,031 points lower. The S&P 500 closed 111 points lower. The NASDAQ was down 355 points.
With trade negotiations set to begin between the United States and the United Kingdom, the North American Meat Institute (Meat Institute) and the British Meat Processors Association (BMPA) signed a memorandum of understanding (MOU) to benefit members of each organization and to support and promote mutually beneficial regulations, standards and policies to enhance bilateral trade in meat and poultry products.
“Members of the Meat Institute and the British Meat Processors Association share many common goals, especially regarding food safety, sustainability, nutrition and worker safety,” says Bill Westman, Meat Institute Senior Vice President for International Affairs. “As our governments begin trade talks, it is important to members in both organizations to formalize an already beneficial relationship. We look forward to working with the Administration and our British counterparts to improve access to significant trade opportunities between our nations.”
Both organizations will share with the other, and disseminate to their members, information that is not subject to a confidentiality and non-disclosure agreement with their respective governments concerning regulatory, scientific, legislative and international developments that affect the other organization’s members. Each organization also will discuss periodically, and as needed, other mechanisms that would mutually benefit each organization’s members.