Cattle futures charged higher Tuesday, helped along by last week’s record-high cash fed cattle prices and resurgent wholesale beef values.
Toward the close, Live cattle futures were an average of $3.29 higher.
Feeder Cattle futures were an average of $5.65 higher.
Negotiated cash fed cattle trade was inactive on moderate demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $235/cwt. in the Texas Panhandle, $235-$236 in Kansas, $245-$247 in Nebraska and mostly $245 in the western Corn Belt. Dressed delivered prices were mostly $383.
Choice boxed beef cutout value was $4.15 higher Tuesday afternoon at $369.94. Select was $4.35 higher at $345.94.
Grain and Soybean futures were lower Tuesday on likely bumper yields and international demand concerns.
Toward the close and through away Jly contracts, Corn futures were 4¢ to 6¢ lower. Kansas City Wheat futures were 10¢ to 11¢ lower. Soybean futures were mostly 1¢ to 2¢ lower.
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Major U.S. financial indices closed lower Tuesday as investors grappled with more tariff threats from the White House.
The Dow Jones Industrial Average closed 61 points lower. The S&P 500 closed 30 points lower. The NASDAQ was down 137 points.
Toward the close, West Texas Intermediate Crude Oil futures (CME) were 90¢ to $1.13 lower through the front six contracts.
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U.S. agricultural sentiment continued to weaken in July, according to the Purdue University/CME Group Ag Economy Barometer. The overall index declined 11 points to 135 from June. The July Current Conditions Index dropped 17 points to 127, while the Future Expectations Index declined 7 points to 139.
“Producers held dim views of current conditions and future expectations, which weakened the sentiment of U.S. farmers in July,” says Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “Still, producers showed somewhat more optimism about U.S. agricultural trade prospects in July, with the majority assessing that the U.S. policy is heading in the right direction.”
More specifically, 43% of July survey respondents reported expectations for an increase in agricultural exports in the next five years, 2 points higher than the previous month. Of those responding to a related question in July, 64% said they considered it likely that the next five years would open new foreign export markets to American agricultural goods.
Among other survey highlights, the Farm Financial Performance Index fell 14 points from June to 90, reflecting concerns about weak income prospects this year as crop prices erode.
Short-Term Farmland Value Expectations Index also softened in the wake of the weaker income outlook for next year, dropping 5 points from June. The latest reading of 115 also leaves the index 3 points lower than last year and 10 points below two years ago.
This month’s barometer survey took place from July 7-11.