Cattle futures bounced higher Tuesday, perhaps helped along by continuing indications that cattle feeders remain current in marketing as supplies increase. Given light negotiated fed cattle trade the last two weeks, there was also the notion that packers likely need to be more aggressive buyers this week.
Live Cattle futures closed an average of $1.59 higher ($1.00 to $2.47 higher in spot Jun).
Feeder Cattle futures closed an average of $1.71 higher (from $1.27 higher in spot Aug to $2.00 higher).
Boxed beef cutout values were steady for Choice and weak for Select Tuesday on light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 1¢ higher in the afternoon at $227.58/cwt. Select was 40¢ lower at $205.85.
******************************
Major U.S. financial indices closed mostly narrowly mixed on Tuesday, buoyed by tech stocks for the second consecutive day. Pressure included lingering trade worries.
The Dow Jones Industrial Average closed 13 points lower. The S&P 500 closed 1 point higher. The NASDAQ was up 31 points, closing at a record high.
******************************
Agricultural producer sentiment rose last month to its highest level since January 2017, according to the Purdue University/CME Group Ag Economy Barometer—a sentiment index derived from a monthly survey of 400 agricultural producers across the U.S.
“Over the last month there’s been a relaxation in international trade tensions with China, and that seems to be playing a role in how producers are viewing their financial future,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
The May barometer reading of 141 was 16 points higher than April. The Index of Current Conditions increased to 132 during May, 9 points higher than in April, while the Index of Future Expectations climbed to 145, up 19 points compared to a month earlier, making it the highest future expectations reading since February 2017.
Despite the improvement in sentiment, only 27% of respondents said now is a good time to make large farm investments.