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Cattle Slip in Recovery from 6 1/2 Year Low

September 14, 2016 at 1:33 by Brent Lantzy

Cattle futures are down again today after reaching the 3.000 cent up limit on Monday and failing to settle at the expanded 4.500 cent limit on Tuesday. This comes after prices dipped to six year lows last week.

The World Agricultural Supply and Demand report released by the USDA increased their forecasts for 2016 beef exports from 2,450 million pounds to 2,460 million pounds on improving trade prospects, though the 2017 export forecast remained unchanged at 2,580 million pounds.

Beef production forecasts were lowered slightly from 24,962 million pounds to 24,942 for 2016, and remain unchanged at 25,800 for 2017.

Meat and livestock monthly trade data released by the USDA on September 7 showed US beef exports up 8% from this time last year to 216 million pounds. Greater exports to South Korea, Mexico, and Japan more than offset a 22% reduction in exports to Canada.

Beef imports from this time in 2015 were down by 6.8% to just below 269 million pounds, the lowest monthly total since February.

July total cattle imports were down 44%, with imports from Canada down 28% and imports from Mexico down 54%.

CME October live cattle futures fell 1.025 cents on Tuesday to settle at 104.675, while the December contract fell 0.900 cents to settle at 105.825 cents per pound.

October feeder cattle were down 1.750 cents to settle at 133.375, and the November contract settled at 128.500 cents per pound, down by 1.375 cents on the day.

The CME feeder cattle index fell 1.825 cents to settle at 130.475 cents per pound.

Afternoon choice beef prices were down $0.91 to $186.62 per cwt, while select cuts were up by $0.08 to $181.30, according to USDA data.

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