Cattle futures on Thursday continued to retrace higher from the early-week meltdown, with odds increasing for steady to higher negotiated cash fed cattle prices this week.
Toward the close, Live Cattle futures were an average of $2.58 higher. Feeder Cattle futures were an average of $4.45 higher.
Negotiated cash fed cattle trade was limited on light to moderate demand in the western Corn Belt through Thursday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some early FOB live trades at $232-$233/cwt. Prices there last week were mostly $230 with dressed delivered trade at $365.
Elsewhere, trade was inactive on light demand. Last week FOB live prices were $230-$231 in Kansas and mostly $230 in Nebraska, where dressed delivered prices were $365.
Choice boxed beef cutout value was $2.93 lower Thursday afternoon at $360.50/cwt. Select was $1.08 lower at $341.33.
Soybean and Corn futures continued lower Thursday, on the more favorable weather outlook, while Wheat gained as traders added more war premium for export disruptions in the Black Sea.
Toward the close and through the front four contracts, Soybean futures were 3¢ to 4¢ lower. Kansas City HRW Wheat were 5¢ to 7¢ higher. Corn futures were 2¢ to 3¢ lower.
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Major U.S. financial indices rebounded Thursday from the previous session’s selloff, even though domestic second quarter economic growth was less than expected at 1.5%, according to the U.S. Bureau of Economic Analysis.
The Dow Jones Industrial Average closed 613 points higher. The S&P 500 closed 121 points higher. The NASDAQ was up 679 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 72¢ to $1.61 lower through the front six contracts.
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Creighton University’s Rural Mainstreet Index (RMI) plunged 10.5 points month to month in July to an overall reading of 42.1. That was the fifth time in six months that the index has been below growth neutral. The index ranges between zero and 100 with 50 representing growth neutral.
“More than half, or 52.0%, of bank CEOs reported that very weak commodity prices will be the greatest challenge to the agriculture economy moving forward,” says Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The RMI is based on a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Rural bankers remain pessimistic about economic growth for their area over the next six months. The July economic confidence index slumped to 34.2 from June’s 42.1. “Weak grain prices, higher input costs and volatility stemming from the Iran war continue to weigh on banker confidence,” according to Goss.