Cattle futures closed lower on Tuesday with profit taking and lower negotiated cash fed cattle prices.
Toward the close, Live Cattle futures were an average of $3.38 lower. Feeder Cattle futures were an average of $5.52 lower.
Negotiated cash fed cattle trade was light on light to moderate demand in the North through Wednesday afternoon, according to the Agricultural Marketing Service.
Early dressed sales in Nebraska were $6-$8 lower at $350-$352/cwt. FOB live sales there last week were $228-$228.50.
In the western Corn Belt, early FOB live trades were mainly $3 lower at most $224 and dressed delivered trades were mostly $5 lower at mainly $360.
Choice boxed beef cutout value was $3.22 lower Wednesday afternoon at $369.00/cwt. Select was $3.60 lower at $355.25.
Grain and Soybean futures were mixed on Wednesday.
Through late afternoon, and through the front four contracts, Corn futures were fractionally higher to 2¢ higher with likely short covering.
Kansas City HRW Wheat futures were 5¢ to 6¢ lower on less war premium on Black Sea exports.
Soybean futures were 6¢ to 7¢ lower with harvest pressure and strong yield results.
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Major U.S. financial indices were higher Wednesday with support from the Fed’s decision to maintain interest rates at the current level.
The Dow Jones Industrial Average closed 97 points higher. The S&P 500 closed 21 points higher. The NASDAQ was up 72 points.
Through mid-afternoon, West Texas Intermediate crude oil futures (CME) were $2.24 to $2.91 higher through the front six contracts.
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Rural bankers remain pessimistic about economic growth for their area over the next six months, according to the latest survey providing data for Creighton University’s Rural Main Street Index (RMI).
“Soaring diesel fuel costs, continuing supply chain disruptions, and higher fertilizer costs continued to weigh on banker economic confidence,” says Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The overall RMI declined 2.2 points month to month in October to 42.5, the lowest reading since July of this year and below growth neutral for the fifth time in six months. Readings range between 0 and 100 with 50.0 representing growth neutral.
“Supply chain disruptions stemming from the Iran conflict have produced record high prices for diesel fuel and fertilizer, pushing the overall index lower,” Goss says. “Almost half of bank CEOs expressed backing for federal farm support programs, such as the recent $8 billion program announced by President Trump.”
The RMI is based on a survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.