Cattle futures were mostly higher Tuesday, helped along by recently stronger Choice wholesale beef values and bullish outside markets.
Toward the close, Live Cattle futures an average of $1.22 higher. Feeder Cattle futures were an average of $2.04 higher (5¢ to $3.40 higher), except for an average of 65¢ lower in the back two contracts.
Negotiated cash fed cattle trade was mostly inactive on light demand through Tuesday afternoon, according to the agricultural Marketing Service.
Last week, FOB live prices were $233/cwt. in Kansas, $232-$233 in Nebraska and $232-$235 in the western Corn Belt. Dressed delivered prices were $360-$365 in Nebraska on a light test and $360-$367 in the western Corn Belt on a light test.
Choice boxed beef cutout value was $2.92 higher Tuesday afternoon at $369.65/cwt. Select was $2.05 higher at $346.50.
Grain and Soybean futures were lower Tuesday as traders appeared to remove more weather premium.
Toward the close and through the front four contracts, Corn futures were mostly 6¢ to 7¢ lower. Soybean futures were mostly 13¢ to 15¢ lower. Kansas City HRW Wheat were mostly 9¢ to 10¢ lower.
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Major U.S. financial indices closed higher again Tuesday, fueled by strong quarterly corporate earnings reports and the lower oil prices tied to a day of optimism about resolution to the U.S.-Iran war.
The Dow Jones Industrial Average closed 907 points higher. The S&P 500 closed 136 points higher. The NASDAQ was up 671 points.
Through mid-afternoon West Texas Intermediate Crude Oil futures (CME) were $1.49 to $4.64 lower through the front six contracts.
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Agricultural producer sentiment improved in July, following three months of decline, according to the Purdue University/CME Group Ag Economy Barometer. The overall index rose 13 points month to month to 126, fueled by improving current and longer-term optimism. The Current Conditions Index increased 20 points to 122, while the Future Expectations Index rose 11 points to 129.
High input costs remained producers’ top concern, with 46% identifying them as the biggest challenge facing their operation. When asked about the biggest challenge to success over the next five to 10 years, 30% of respondents cited crop or livestock prices.Beyond crop and livestock prices, producers identified farm transition (17%) and cost control (16%) as the second- and third-highest concerns over the next five to 10 years. Other major issues included financial considerations and weather at 13%, trade at 7%, and government policy at 3%.
The Farm Capital Investment Index also ended a three-month decline, with July’s survey reading at 50. While most producers said their current financial position has not improved over the past year, they expressed greater optimism about the months ahead.
“Stronger crop prices during the survey period likely contributed to the improvement we observed in both farmer sentiment and the Farm Capital Investment Index,” says Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “At the same time, producers continue to wrestle with high input costs and uncertainty about future crop and livestock prices.”
The July survey also explored producers’ expectations for agricultural exports and foreign markets. Producers remain cautiously optimistic about U.S. agricultural exports with 42% of respondents expecting agricultural exports to increase over the next five years, compared with 13% who expect exports to decline. A majority of producers (56%) believe new foreign export markets for U.S. agricultural goods are likely to open during that period, though this optimism has moderated from last July, when 64% expected new market opportunities.
The survey was conducted from July 13-17.