Volatility in equity markets and sluggish cash fed cattle trade continued to pressure Cattle futures on Friday. Though undeveloped, reports of early fed cattle trade indicated prices about steady with the previous week.
Except for 75¢ higher in spot Feb, Live Cattle futures closed narrowly lower (10¢ to 47¢ lower).
Feeder Cattle futures closed an average of 72¢ lower (27¢ to $1.17 lower).
Choice boxed beef cutout value was $2.01 lower on Friday afternoon at $206.52/cwt. Select was $1.05 lower at $202.74.
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Equity markets continued recent violent swings on Friday, with major U.S. financial indices gaining back about a third of what was lost in the previous session. Worries about rising treasury yields, tied closely to interest rates, and the likelihood they will accelerate inflation, continue to be a central focus.
The Dow Jones Industrial Average closed 330 points higher. The S&P 500 closed 38 points higher. The NASDAQ closed 97 points higher.
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Pastureland and ranchland values continued to increase faster than cropland values in the fourth quarter; at least they did in states within the 8th Federal Reserve District.
Quality farmland values rose 5% in the fourth quarter, compared to a year earlier, while ranchland and pastureland values increased 14.8%, according to the latest Agricultural Finance Monitor (AFM) published by the Federal Reserve Bank of St. Louis. Cash rents for Quality farmland increased 3.9%, while rents for ranchland and pastureland rose by 10.1%.
States in the 8th District are: Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee.
“The St. Louis metropolitan area continues to creep up U.S. Highway 61 toward this area. In response, demand for lower-quality land for recreation is rising as the economic outlook for people from the city improves,” according to a Missouri lender. “This also causes other classes of land to hold their value.”
The AFM survey was conducted from Dec. 15 through the end of last year. Results are based on the responses from 23 agricultural banks within the boundaries of the Eighth Federal Reserve District.