Another day of stronger cash trade added lift to Cattle futures an average of $1.60 higher.
So far this week, negotiated cash fed cattle prices are $1 higher on a live basis in the Southern Plains at $140/cwt., $4 higher in Nebraska at $144-$146 and $3 higher in the western Corn Belt at $145-$146. Dressed prices are $4 higher at $230.
Through Wednesday afternoon, trade was slow on light demand in Nebraska at $146 and in the western Corn Belt at $145, but too few to trend, according to the Agricultural Marketing Service.
Choice Boxed beef cutout value was $1.11 lower Wednesday afternoon at $268.82/cwt. Select was $2.68 lower at $256.53.
Mainly firm Corn futures continued to add support to Feeder Cattle, which closed an average of $1.47 higher.
Corn futures closed mostly fractionally higher to 1¢ higher, except for 11¢ and 10¢ higher in the front two contracts.
Soybean futures closed 12¢ to 30¢ higher in the front four contracts and then mostly 7¢ to 9¢ higher.
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Major U.S. financial indices closed mixed Wednesday with pressure in tech stocks but mostly positive quarterly corporate earnings reports in other sectors.
The Dow Jones Industrial Average closed 249 points higher. The S&P 500 closed 2 points lower. The NASDAQ was down 166 points.
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Global economic recovery from the pandemic declined considerably due to Russia’s invasion of Ukraine, according to the latest semiannual World Economic Outlook from the International Monetary Fund (IMF).
IMF projects global economic growth to slow from an estimated 6.1% last year to 3.6% this year, which is 0.8% less than the organization’s expectations in January.
“The economic effects of the war are spreading far and wide—like seismic waves that emanate from the epicenter of an earthquake—mainly through commodity markets, trade, and financial linkages,” according to the report. “Because Russia is a major supplier of oil, gas, and metals, and, together with Ukraine, of wheat and corn, the current and anticipated decline in the supply of these commodities has already driven their prices up sharply.”
Compared to its January projection, IMF increased expected inflation in advanced economies this year 1.8% to 5.7%. Inflation expectations for emerging and developing economies grew 2.8% to 8.7%.
“The war in Ukraine will amplify economic forces already shaping the global recovery from the pandemic,” say IMF analysts. “The war has further increased commodity prices and intensified supply disruptions, adding to inflation. Even before Russia invaded Ukraine, broad price pressures had led central banks to tighten monetary policy and indicate increasingly hawkish future stances. As a result, interest rates had risen sharply and asset price volatility had increased since the start of 2022—hitting household and corporate balance sheets, consumption, and investment. The prospect of higher borrowing costs has also increased the cost of extended fiscal support. These changes are occurring faster than previously expected even as many parts of the global economy—particularly countries with low vaccination rates—must contend with continued strain on health care systems because of the pandemic.”