Negotiated cash fed cattle trade was slow on light demand in the Southern Plains through Friday afternoon, according to the Agricultural Marketing Service. FOB live prices were steady at $190/cwt. in a light test.
Elsewhere, trade ranged from limited on light demand to inactive on very light demand with too few transactions to trend.
The previous week, FOB live prices were mostly $198 in Nebraska and the western Corn Belt. Dressed delivered prices were mostly $312 but stretched as high as $317.
Choice boxed beef cutout value was 59¢ higher Friday afternoon at $330.43/cwt. Select was 68¢ higher at $305.06/cwt.
Cattle futures mainly drifted lower in light post-holiday trade on Friday.
Live Cattle futures closed an average of 20¢ lower, except for an average of 41¢ higher in the front two contracts.
Feeder Cattle futures closed an average of $1.49 lower.
Grain and Soybean futures rallied on Friday, with Wheat receiving support from export sales and Corn buoyed by a spottier rain forecast.
Corn futures closed mostly 3¢ to 4¢ higher. KC HRW Wheat closed 11¢ to 15¢ higher. Soybean futures closed mostly 6¢ to 8¢ higher.
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Major U.S. financial indices edged higher Friday, supported by a weaker labor report than expected, boosting hopes of the Fed cutting interest rates.
Total nonfarm payroll employment increased by 206,000 in June, and the unemployment rate was slightly higher at 4.1%, according to the U.S. Bureau of Labor Statistics.
In June, average hourly earnings for all employees on private nonfarm payrolls increased by 10¢ to $35. Over the past 12 months, average hourly earnings have increased by 3.9%.
The Dow Jones Industrial Average closed 67 points higher. The S&P 500 closed 30 points higher. The NASDAQ was up 164 points.
West Texas Intermediate Crude Oil futures on the CME closed 72¢ to 77¢ lower through the front six contracts.
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Creighton University’s overall Rural Mainstreet Index (RMI) sank below growth neutral in June for the 10th consecutive month. Specifically, the RMI declined from 44.2 in May to 41.7 in June. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business explains higher interest rates, weak agriculture commodity prices and sinking agriculture equipment sales were key drivers of the decline.
“Farm operating loans are up 20% in total volume compared to last year, a sign that cash flow and cash (balances) are down from last year,” says James Brown, president of Hardin County Savings Bank in Eldora, Iowa.