Negotiated cash fed cattle traded ended up generally $2.00 to $2.50 lower on a live basis last week at mostly $107 (range of $106.00 to $108.50). Dressed trade was $3-$4 lower at $170.
Despite softer cash prices, Cattle futures gained strength Monday, surprising more than a few folks. Support likely included firming wholesale beef values and opening the books on a new month.
Live Cattle futures closed an average of $1.20 higher.
Feeder Cattle futures closed an average of $2.09 higher ($1.62 to $2.70 higher).
Wholesale beef values were higher on fairly good demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.13 higher Monday afternoon at $210.82/cwt. Select was 94¢ higher at $202.21.
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Major U.S. financial indices closed marginally lower Monday, pressured by trade worries once again, concerning Canada and China.
The Dow Jones Industrial Average closed 12 points lower. The S&P 500 closed 4 points lower. The NASDAQ was down 18 points.
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Agricultural producer sentiment increased by 12 points in August to 129, according to the latest Purdue University/CME Group Ag Economy Barometer. That was still significantly lower than sentiment in May and June.
The advance was due mostly to a 22-point rise in the Index of Current Conditions, versus an increase of 6 points in the Index of Future Expectations. The barometer is based on a monthly survey of 400 agricultural producers from across the country.
“Farmer sentiment improved over the past month, but producers are uncertain about the (tariff) aid package’s ability to offset income losses on their farm,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Before the August survey, USDA announced intentions to provide aid to farmers impacted by importers’ tariffs. When asked specifically about the relief plan’s expected impact, farmers were split on whether they believed the plan addressed concerns about tariffs’ impact on their farm’s income.
In August, producers were again asked how likely they thought it was that a trade war would reduce their farm’s net income. While 71% (virtually unchanged from July) felt their farm income would be negatively impacted, respondents who expect to see an income reduction of 20% or more fell from 35% in July to 26% in August.