Cattle futures drooped lower on Wednesday, following early-session support. The week’s softer cash fed cattle prices applied pressure, as did softer front-month Lean Hogs.
Prices in the weekly Fed Cattle Exchange Auction were $1 lower than country trade at a weighted average price of $119/cwt. for delivery of 1-9 days. Out of 651 offered, 401 head sold—four lots of steers and heifers in Kansas. Another 60 head were offered for delivery at 10-17 days with no takers.
In country trade so far this week, live prices are generally $1-$2 lower at $120 with dressed sales $1-$3 lower at $192.
Live Cattle futures closed an average of 62¢ lower.
After $1.10 lower in spot Jan, Feeder Cattle futures closed an average of 54¢ lower.
Choice boxed beef cutout value was 43¢ lower on Wednesday afternoon at $210.06/cwt. Select was 46¢ lower at $203.23.
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Major U.S. financial indices closed slightly lower on Wednesday. Other than speculation about trade policy there didn’t seem to be much news driving a trend.
The Dow Jones Industrial Average closed 16 points lower. The S&P 500 closed 3 points lower. The NASDAQ closed 10 points lower.
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Producer sentiment toward the health of the agricultural economy declined in December for the second consecutive month, according to the latest reading of the Purdue University/CME Group Ag Economy Barometer.
The December barometer dropped 2 points to 126, driven by a 7-point decline in the Index of Future Expectations, one of two sub-indices that comprise the barometer.
“The share of producers expecting better financial positions for their farms fell to just 20% in December, while the share expecting worse financial positions climbed to 30%,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Both of these responses are the least optimistic levels in more than a year.”
Similarly, when asked about the overall agricultural economy, 63% of respondents said they expect bad times over the next 12 months.