Corn futures continued higher Monday with carryover support from last week’s significantly lower yield estimates by the Pro Farmer Tour, compared to USDA’s most recent forecast.
Corn futures closed 11¢ to 18¢ higher through Sep ‘23 and then mostly 4¢ to 7¢ higher.
Another day of rising Corn futures took Feeder Cattle future down another peg, an average of $2.05 lower (70¢ lower at the back to $2.32 lower).
Steady to higher beef values helped Live Cattle futures trickle an average of 22¢ lower., except for 75¢ higher in waning spot Aug.
Choice Boxed beef cutout value was 28¢ higher Monday afternoon at $263.04/cwt. Select was $3.99 higher at $242.75/cwt.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were steady to $1 higher in the Southern Plains at $142/cwt., $1 to $3.50 lower in Nebraska at $145 and $1-$2 lower in the western Corn Belt at $147-$148. Dressed prices were $2 lower in Nebraska at $232 and steady to $2 lower in the western Corn Belt at $232-$234.
******************************
Major U.S. financial indices extended the previous session’s steep decline, which was fueled by hawkish comments from Federal Reserve Chair Jerome Powell, regarding further interest rate hikes.
The Dow Jones Industrial Average closed 184 points lower. The S&P 500 closed 27 points lower. The NASDAQ was down 127 points.
West Texas Intermediate Crude Oil futures on the CME closed $2.75 to $3.95 higher through the front six contracts, spurred on by supply concerns related to geopolitical tensions.
******************************
Recent rains improved the opportunity to plant winter wheat in a few parts of the Southern Plains but more is needed for broader opportunity.
In Oklahoma, for instance, there are a few areas with sufficient topsoil moisture to support winter wheat planting soon, but just a few areas, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He explains wheat for forage or for dual-purpose grazing and grain is typically planted in September.
“If wheat pasture does become available, it may be used somewhat differently than usual this fall and winter,” Peel says. “Given the limited hay supply, proportionally more wheat pasture is likely to be used for cow herds than for stocker production. Even if there is wheat pasture, stocker demand may be somewhat lighter than usual this year. However, the fall run of calves may also be smaller than usual. In the past seven weeks, the Oklahoma combined auction total for feeder cattle has been up 13.6% year over year as feeder cattle have been marketed earlier than usual. Additionally, the auction volume of cull cows has been up 108.1% year over year in the same period as producers continue to adjust cow herds to match the limited forage supplies available for fall and winter.”