Current Cattle Markets Daily Headlines for January 5, 2021

by | Jan 5, 2021 | 0 comments

Brazil’s beef industry association forecasts exports up 6 percent in 2021

https://www.meatingplace.com/Industry/News/Details/96466

  • According to Brazil’s beef industry association Abiec, Brazilian beef exports are expected to reach 2.14 million metric tons in 2021, up 6 percent from 2.02 million metric tons in 2020.
  • Revenue from 2021 beef exports should reach $8.79 billion, up 3 percent from $8.53 billion in 2020.
  • Antonio Camardelli, president of Abiec, stated that these estimates for 2021 are conservative and considers lower export prices.
    • Abeic forecasts the average export price for Brazilian beef in 2021 to be $4,104/metric ton, down from $4,224/metric ton in 2020.
      • This price decline takes into account for the foreign exchange rate and the issues that countries are still facing with Covid-19.
    • Abeic expects Brazilian beef exports to expand in countries they already serve and to also break into new markets.
    • Currently, 26 Brazilian beef processing plants are waiting to receive authorization to export to China, Brazil’s largest beef importer.
      • Brazil already has 35 beef processing units that are permitted to export to China.
    • The country is also negotiating to export fresh beef to Japan, Mexico, South Korea and Canada.
      • These markets combined have the potential to import approximately 260,000 metric tons of Brazilian beef per year, equating to $1.5 billion in revenue for exporters.

 

Livestock comments by Dr. Andrew Griffith

https://www.nationalbeefwire.com/livestock-comments-dr-andrew-griffith

  • The finished cattle market is influenced by many factors.
    • One factor that needs to be considered is the number of cattle being shipped to Mexico.
  • Since the first week of July 2020, over 10,000 hd. of beef cattle for slaughter have been shipped to Mexico.
    • This compares to only 134 hd. being shipped to Mexico during the first ten months of 2019.
  • These numbers seen in 2020 are some of the highest volumes of cattle shipped to Mexico for slaughter since the early 2000s.
  • Nationally speaking, the export of these cattle does not do a lot to influence the market, however it greatly impacts cattle feeders in South Texas where Brahman and Brahman influenced cattle are mainstays.
    • Mexico has provided another outlet for these ear cattle that will not grade Choice or higher which adds value to those cattle.

 

Unexpected volatility returns

https://www.thebeefread.com/2021/01/04/unexpected-volatility-returns/?ct=t(EMAIL_CAMPAIGN_1_4_2021_12_30)&mc_cid=47ff271ad4&mc_eid=c7ce35752d

  • 2021 cattle markets off to an unstable and violent start as equities and multiple commodities sold off sharply yesterday.
    • By noon yesterday, cattle futures traded over 300 points lower.
      • This volatility may have been caused by today’s run-off election in Georgia or some unquantifiable reason.
    • Last Thursday, December live cattle expired higher than any other spot live cattle contract in 2020.
    • As of yesterday, February live cattle traded the lowest for its own contract month since December 2010 at $111.50.
    • Immediate fundamentals were most likely not related to Monday’s sell off as cutout values trended higher and are expected to increase as the week goes on.

 

Boxed beef prices

www.nationalbeefwire.com

  • Choice boxed beef: $209.87 (-0.08)
  • Select boxed beef: $196.53 (+0.88)

 

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

How did we get here?

From the Holcomb Tyson fire to COVID-19;
Click to see a timeline of events that have brought to light the profit and pricing disparity in cattle markets.

READ MORE…

We're in this together.

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

%d