Daily Market Highlights

Corn futures rallied Tuesday, apparently fueled by more negative crop conditions (see below). They closed 5¢ to 7¢ higher through Jly ‘23 and then 2¢ to 3¢ higher. Soybean futures closed mostly 22¢ to 28¢ higher through Aug ‘23, except for sharply higher in the two front contracts, and then 15¢ to 19¢ higher.

Higher grain Futures and oversold conditions pressured Feeder Cattle futures an average of $1.73 lower (90¢ lower at the back to $3.15 lower toward the front). Live Cattle futures closed an average of 47¢ lower (25¢ to $1.05 lower).

Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Tuesday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.

Last week, live prices were $135-$136/cwt. in the Texas Panhandle, $136 in Kansas, $140-$143 in Nebraska and $141-$147 in the western Corn Belt. Dressed prices were $227 in Nebraska and $225-$232 in the western Corn Belt.

Choice Boxed beef cutout value was $1.51 lower Tuesday afternoon at $264.73/cwt. Select was $1.16 lower at $237.70/cwt.

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Major U.S. financial indices faltered Tuesday, led lower by tech stocks in general and chip makers specifically.

The Dow Jones Industrial Average closed 58 points lower. The S&P 500 closed 17 points lower. The NASDAQ was down 150 points.

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National pasture and range conditions the week ending Aug. 7 continued to deteriorate compared to the prior year, according to the latest USDA Crop Progress report.

24% of pasture and range was rated as Good (21%) or Excellent (3%), which was 1% less than a week earlier and 6% less than a year earlier. Conversely, 49% was rated as Poor (23%) or Very Poor (26%), which was the same as a week earlier but 6% more than a year earlier.

90% of corn was silking, which was 4% less than last year and 3% less than the five-year average. 45% was in the dough stage, compared to 53% last year and 49% for average. 6% was dented, which was 1% less than last year and 2% less than the five-year average. 58% was rated as Good (46%) or Excellent (12%), which was 3% less than the prior week and 6% less than a year earlier. 16% was rated Poor (10%) or Very Poor (6%) versus 14% a week earlier and 11% a year earlier.

89% of soybeans were blooming, which was 1% less than last year but 1% more than the average. 61% were setting pods, compared to 70% last year and 66% for average. 59% were rated as Good (49%) or Excellent (10%) which was 1% less than the previous week and year. 11% were rated Poor (8%) or Very Poor (3%), the same as a week earlier and 2% less than the prior year.

86% of winter wheat was harvested, compared to 94% the previous year and 91% for the average.

Last week’s stronger cash prices for feeder and fed cattle, along with softer Corn futures helped Cattle futures extend gains Monday, especially Feeder Cattle, which closed an average of $1.49 higher. Live Cattle futures closed an average of 31¢ higher, except for unchanged in the back contract.

Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Monday afternoon with too few transactions to trend, according to the Agricultural marketing Service.

Last week, live prices were $135-$136/cwt. in the Texas Panhandle, $136 in Kansas, $140-$143 in Nebraska and $141-$147 in the western Corn Belt. Dressed prices were $227 in Nebraska and $225-$232 in the western Corn Belt.

The five-area direct weighted average steer price last week was $140.84/cwt. on a live basis, which was $1.01 more than the previous week. The weighted average price in the beef was $2.20 higher at $227.83.

Choice Boxed beef cutout value was $1.62 higher Monday afternoon at $266.24/cwt. Select was 19¢ higher at $238.86/cwt.

Corn futures closed mostly 1¢ to 2¢ lower.

Soybean futures closed mostly 3¢ to 8¢ lower.

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Major U.S. financial indices closed little changed Monday as investors paddled in place awaiting further data direction.

The Dow Jones Industrial Average closed 29 points higher. The S&P 500 closed 5 points lower. The NASDAQ was down 13 points.

CME WTI Crude Oil futures closed $1.75 to $2.06 higher through the through the front six contracts.

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The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,800 per acre for 2022, up $420 per acre (12.4%) from 2021, according to the latest Land Values Summary from USDA’s National Agricultural Statistics Service.

United States cropland value averaged $5,050 per acre, an increase of $630 per acre (14.3%) from the previous year.

United States pasture value averaged $1,650 per acre, an increase of $170/ acre (11.5%) from 2021. From a percentage standpoint, pasture value was up the most — 17.7% — in the Northern Plains, where average value per acre was $1,330: Kansas (+23.3% to $1,850/acre); South Dakota (+16.0% to $1,230/acre); Nebraska (+14.8% to $1,240/acre); and North Dakota (+10.7% to $930/acre).

Regionally, average pasture value increases were among the least — 6.3% — in the Delta states, where average pasture value was $2,870/acre: Louisiana (+5.1% to $3,100/acre); Arkansas (+5.6% to $2,850/acre); and Mississippi (+8.9% to $2.700/acre).

Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on light demand through Friday afternoon with too few transactions to trend, according to the Agricultural marketing Service.

For the week, live prices were 50¢ to $1 higher in the Southern Plains at $136/cwt., $2 higher at $140 in Nebraska and at $143-$147 in the western Corn Belt. Dressed prices were $2 higher in Nebraska at $227 and $1-$4 higher in the western Corn Belt at $225-$232.

Cattle futures edged higher Friday, supported by stronger cash prices.

Live Cattle futures closed an average of 24¢ higher.

Feeder Cattle futures closed an average of 37¢ higher, except for 12¢ lower in Mar.

Choice Boxed beef cutout value was $1.66 lower Friday afternoon at $264.62/cwt. Select was $1.68 lower at $238.67/cwt.

Corn and Soybean futures were mixed Friday amid weather speculation and biding time for next week’s USDA yield estimates.

Corn futures closed mostly 3¢ to 8¢ higher.

Soybean futures closed mostly 6¢ to 9¢ lower through Aug ‘23 and then mostly 1¢ to 2¢ lower.

Total estimated cattle slaughter last week of 651,000 head was 18,000 fewer than the previous week but 7,000 head more than the same week last year. Total year-to-date estimated cattle slaughter of 10.1 million head was 238,000 head more (+1.2%) than a year earlier. Total estimated year-to-date beef production of 16.6 billion lbs. was 168.9 million lbs. more (+1.0%) than a year earlier.

The five-area direct weighted average steer price in July was $142.16/cwt. on a live basis. That was 62¢ less than the prior month but $20.13 higher year over year. The average steer price in the beef was $228.25 for July, which was $1.51 less than the previous month but 30.63 higher than the previous year.

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Major U.S. financial indices closed mixed Friday as investors weighed the positive jobs report against further potential monetary tightening by the Federal reserve.

Total non-farm payroll employment rose by 528,000 in July, according to the Employment Situation Summary from the U.S. Bureau of Labor Statistics. The number shattered expectations ahead of the report. The nation’s unemployment rate edged down to 3.5%. Both total non-farm employment and the unemployment rate have returned to their February 2020 pre-pandemic levels. Average hourly earnings for all employees on private non-farm payrolls rose by 15¢ to $32.27.

The Dow Jones Industrial Average closed 76 points higher. The S&P 500 closed 6 points lower. The NASDAQ was down 63 points.

CME WTI Crude Oil futures closed 37¢ to 52¢ higher through the through the front six contracts.

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U.S. beef exports topped $1 billion in June for the fifth time this year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

June beef exports of 130,638 metric tons (mt), were slightly less than the record volume posted in May but were 16% more year-over-year and the fourth largest on record. Export value was $1.05 billion in June, also slightly less than the May record but 31% above last year. For the first half of 2022, beef exports increased 6% from a year ago to 743,904 mt, valued at $6.19 billion (up 33%).

While beef export growth has been largely driven by major Asian markets such as South Korea, China/Hong Kong, Japan and Taiwan, exports are also trending higher to the ASEAN region, the Caribbean, Central America, Europe and the Middle East.

“The first-half performance for U.S. beef exports was nothing short of remarkable, especially considering the growing economic headwinds in many key markets and continued shipping and logistical challenges,” says USMEF President and CEO Dan Halstrom. “The rebound in the global foodservice sector has provided a tremendous lift in 2022, even though it is still far from a full recovery in many Asian and European destinations. We definitely see opportunities for further growth, though inflationary pressure and the stronger U.S. dollar continue to raise concerns about consumer spending power.”

June beef export value averaged $447.45 per head of fed slaughter, up 27% from a year ago. Through June, per-head value averaged $476.98, up 33% from the first half of 2021. Exports accounted for 15.5% of total June beef production and 13.3% for muscle cuts, up significantly from 13.6% and 11.5%, respectively, in June 2021. First-half exports accounted for 15.4% of total production and 13.2% for muscle cuts, up from 14.7% and 12.5%, respectively.

Negotiated cash fed cattle trade was moderate with light to moderate demand in the Southern Plains through Thursday afternoon. Prices were 50¢ to $1 higher at $135.50 to $136/cwt.

Elsewhere, trade was limited on light demand with too few transactions to trend, according to the Agricultural Marketing Service.

So far this week, live prices are $2 higher in Nebraska at $140 and generally steady in the western Corn Belt at $141-$145. Dressed prices are steady to $7 higher in Nebraska at $225-$232.

Choice Boxed beef cutout value was $1.66 lower Thursday afternoon at $266.28/cwt. Select was 95¢ lower at $240.35/cwt.

Firm to stronger cash fed cattle prices helped Live Cattle futures mostly edge higher and Feeder Cattle futures mostly fade higher Corn futures.

Live Cattle futures closed narrowly mixed from an average of 18¢ lower in the front three contracts to an average of 41¢ higher.

Feeder Cattle futures closed an average of 18¢ lower, except for an average of 17¢ higher in the back two contracts.

Corn futures closed mostly 6¢ to 10¢ higher and Soybean futures closed mostly 40¢ to 57¢ higher, apparently buoyed by technical buying and weather speculation.

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Major U.S. financial indices closed narrowly mixed Thursday as investors seemed in hover mode ahead of the jobs report due out Friday.

The Dow Jones Industrial Average closed 85 points lower. The S&P 500 closed 3 points lower. The NASDAQ was up 52 points.

CME WTI Crude Oil futures closed $2.12 to $2.41 lower through the through the front six contracts.

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“The August 2022 contract is currently the lowest price of any (see chart below), and every consecutive contract is higher than the previous. This is a clear signal that traders are expecting feeder cattle prices to increase into 2023,” says Josh Maples, Extension livestock economist at Mississippi State University, in the latest Cattle Market Notes Weekly.

Maples points out Feeder Cattle contract prices (solid line, July 29) are approximately $10/cwt. higher across all contracts since June 1 (dotted line).

“The spring 2023 contracts are currently trading near $190 which, if actually observed, would mean feeder cattle prices not seen since 2015,” Maples explains. “Strong market expectations also mean there may be some attractive risk management opportunities for producers depending on your goals … The December Corn futures contract is down more than $1/bu. since mid-June, which also has a positive impact on cattle market expectations.”

Steady to firmer cash prices helped Live Cattle futures close an average $1.17 higher on Wednesday (67¢ higher at the back to $1.82 higher in spot Aug).

Negotiated cash fed cattle trade was slow on moderate demand in Nebraska through Wednesday afternoon with live prices at $140-$142/cwt. but mostly $2 higher at $140. Dressed trade there last week was at $225.

Elsewhere, trade ranged from limited on light demand to mostly inactive on light demand with too few to trend.

On Tuesday, live prices were steady at $135 in the Southern Plains and unevenly steady in the western Corn Belt at $143. Dressed prices there last week were $224-$228.

Choice Boxed beef cutout value was 52¢ lower Wednesday afternoon at $267.94/cwt. Select was 25¢ lower at $241.30/cwt.

Recently lower Corn futures and continued cash strength helped boost Feeder Cattle futures an average of $1.62 higher ($1.22 higher at the front to $2.15 higher at the back).

Corn futures firmed Wednesday and closed mostly fractionally higher to 2¢ higher, following the previous session’s steep decline.

Soybean futures closed 11¢ to 16¢ lower, pressured by lower oil prices.

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Major U.S. financial indices closed higher Wednesday supported by strong corporate earnings reports.

The Dow Jones Industrial Average closed 416 points higher. The S&P 500 closed 63 points higher. The NASDAQ was up 319 points.

CME WTI Crude Oil futures closed $2.72 to $3.76 lower through the through the front six contracts.

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Compared to its last quarterly World Economic Outlook, the International Monetary Fund (IMF) paints a bleaker outlook for the global and domestic economies in its July update.

“A tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022 as risks began to materialize. Global output contracted in the second quarter of this year, owing to downturns in China and Russia, while U.S. consumer spending undershot expectations,” according to the report. “Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide –– especially in the United States and major European economies –– triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID-19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine.”

IMF’s baseline forecasts global economic growth this year to be 3.2%, compared to 6.1% last year — 0.4% less than the previous estimate. U.S. economic growth is projected at 2.3% this year versus 5.7% in 2021 — 1.4% less than the previous outlook. IMF projects global economic growth next year at 2.9% and 1.0% for the U.S.

“The risks to the outlook are overwhelmingly tilted to the downside,” according to the report. “The war in Ukraine could lead to a sudden stop of European gas imports from Russia; inflation could be harder to bring down than anticipated, either if labor markets are tighter than expected or inflation expectations unanchor; tighter global financial conditions could induce debt distress in emerging market and developing economies; renewed COVID-19 outbreaks and lockdowns as well as a further escalation of the property sector crisis might further suppress Chinese growth; and geopolitical fragmentation could impede global trade and cooperation.”

Cattle futures weakened Tuesday, pressured by lower wholesale beef prices, the weaker cash outlook and worries about House Speaker Nancy Pelosi’s visit to Taiwan potentially straining the already frayed relationship between the U.S. and China.

Feeder Cattle futures closed an average of $1.08 lower (57¢ to $1.65 lower).

Live Cattle futures closed an average of 17¢ lower, except for 2¢ higher in Jun.

Grain and Soybean futures closed lower again Tuesday with weather pressure and steady crop condition ratings week to week and year over year.

Corn futures closed 11¢ to 15¢ lower through Sep ‘23 and then mostly 5¢ to 8¢ lower.

Soybean futures closed mostly 12¢ to 19¢ lower.

Negotiated cash fed cattle trade was slow on light demand in the western Corn Belt through Tuesday afternoon, according to the Agricultural Marketing Service. There were a few live trades at $143/cwt. but too few to trend. Elsewhere, trade was at a standstill.

Last week, live prices were $135/cwt. in the Southern Plains, $138 in Nebraska and $141-$145 in the western Corn Belt. Dressed prices were $225 in Nebraska and $224-$228 in the western Corn Belt.

Choice Boxed beef cutout value was $2.14 lower Tuesday afternoon at $268.46/cwt. Select was $1.35 lower at $241.55/cwt.

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Major U.S. financial indices settled lower Tuesday with the aforementioned concerns about increased tension between the U.S. and China.

The Dow Jones Industrial Average closed 402 points lower. The S&P 500 closed 27 points lower. The NASDAQ was down 20 points.

CME WTI Crude Oil futures closed 53¢ to $1.17 higher through the through the front six contracts.

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Agricultural producer sentiment increased 6 points from June to July to a reading of 103, according to the latest Purdue University/CME Group Ag Economy Barometer. The Index of Current Conditions rose 10 points to 109 and the Index of Future Expectations rose 4 points to 100. All three indices were still 23-24% lower than a year earlier.

“Even though we saw a slight uptick in sentiment this month, there is still a tremendous amount of uncertainty in the agricultural economy,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Key commodity prices, including wheat, corn and soybeans, all weakened during the month and producers remain concerned over rising input prices and input availability.”

Producers’ views on farmland values diverged this month as the Short-Term Farmland Value Index declined 9 points to 127, while the long-term index rose 9 points to 150. The short-term index is down 20% from its peak reading in 2021, while the long-term index is only 6% lower than the peak reached last year. Short-term there was a shift away from expectations that farmland values will go higher, with more producers in July expecting values to remain about the same.

“The short-run and long-term farmland indices don’t always move in tandem, but the magnitude of this month’s divergence between the short and long-term indices is unusual,” Mintert says. “Producers who expect values to rise over the upcoming five years continue to say that non-farm investor demand and inflation are the two primary reasons they expect values to rise.”

The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between July 11-15.

A reprieve in Corn futures helped Feeder Cattle climb an average of $1.64 on Monday, further bolstered by last week’s strong cash trade.

Corn futures closed 9¢ to 10¢ lower through new-crop contracts and then mostly 1¢ to 2¢ lower. Pressure was likely due in part to reports that the first load of Ukraine grain exports in too many months left from the port at Odessa.

Live Cattle futures closed an average of 66¢ higher, with another day of higher wholesale beef prices.

Choice Boxed beef cutout value was $1.36 higher Monday afternoon at $270.60/cwt. Select was 65¢ higher at $242.90/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 $135/cwt. in the Southern Plains, $138 in Nebraska and $141-$145 in the western Corn Belt. Dressed prices were $225 in Nebraska and $224-$228 in the western Corn Belt.

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Major U.S. financial indices closed narrowly lower Monday, with pressure from energy stocks.

The Dow Jones Industrial Average closed 46 points lower. The S&P 500 closed 11 points lower. The NASDAQ was down 21 points.

CME WTI Crude Oil futures closed $3.04 to $4.73 lower through the through the front six contracts.

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Nationally, year-to-date beef cow slaughter was 14.1% more year over year through mid-July, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.

“Beef cow slaughter would have to drop to a level less than 6% higher year over year for the remainder of the year before the annual beef cow slaughter would not be double-digit higher for the entire year,” Peel says. 

Further, Peel explains heifer slaughter is up 3.9% year over year so far in 2022. 

“The July 1 inventory of heifers in feedlots was up 2.9% over last year and confirms that heifers continue to be diverted into feeder channels rather being retained for breeding,” Peel explains. “The mid-year cattle inventory showed that the beef cow herd was down 2.4% year over year and the inventory of beef replacement heifers was down 3.5% from last year. The beef industry is poised to see the largest single year beef cow herd decrease in more than 35 years.”

Feeder Cattle futures closed an average of 98¢ higher on Friday with continued cash strength and stabilizing Corn futures. Week to week, though, they were an average of $3.37 lower, pressured by surging Corn futures, which were an average of 52’1¢ higher through the front six contracts.

Live Cattle futures closed an average of 32¢ higher on Friday, supported by firmer wholesale beef values.

Choice Boxed beef cutout value was $1.47 higher Friday afternoon at $269.24/cwt. Select was $1.44 higher at $242.25/cwt.

Negotiated cash fed cattle trade ranged from slow on light to moderate demand to mostly inactive on light demand through Friday afternoon, according to the Agricultural Marketing Service. There were a few live sales in the western Corn Belt at $144-$145/cwt., but too few to trend.

For the week, live prices were $1 lower in the Southern Plains at $135/cwt., $1.00-$5.50 lower in Nebraska at $139.00-$143.50 and steady in the western Corn Belt at $141-$145. Dressed prices were $2 lower in Nebraska at $225 and $3-$5 lower in the western Corn Belt at $224-$225.

Estimated total cattle slaughter for the week of 669,000 head was 4,000 head more than the previous week and 23,000 head more than the same week last year. Total estimated year-to-date cattle slaughter of 19.48 million head was 234,000 head more (+1.2%) than the previous year. Estimated total year-to-date beef production of 16.07 billion lbs. was 169.5 million lbs. more (+1.1%) than a year earlier.

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Major U.S. financial indices closed higher Friday, led by tech and energy stocks, and supported by a slight improvement in the closely watched University of Michigan Index of Consumer Sentiment.

The Dow Jones Industrial Average closed 315 points higher. The S&P 500 closed 57 points higher. The NASDAQ was up 228 points.

CME WTI Crude Oil futures closed $1.89 to $2.20 higher through the through the front six contracts.

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The CME Feeder Cattle Index closed $1.30 higher week to week on Thursday at $172.31/cwt. Andrew P. Griffith, agricultural economist at the University of Tennessee notes in his weekly market comments the Feeder Cattle Index increased $19/cwt. between June 1 and July 27, while spot Feeder Cattle futures increased about $8.

“The cash feeder cattle market and the Feeder Cattle futures are jockeying for position in an attempt to determine where prices should be,” Griffith says. “The basis, or the difference between cash prices and futures prices, has narrowed considerably as the market is moving into August. This is to be expected as cash prices and futures prices should converge. Part of the narrowing of basis has been from futures declining slightly, but most of the narrowing of the basis has come from higher cash prices. Prices will continue to converge through August. It is unknown if it will be through higher cash prices or lower futures prices. Producers should hope for the former.”

Feeder Cattle futures closed an average of $1.55 lower Thursday beneath the weight of higher Corn futures, which were 14¢ to 16¢ higher through new-crop contracts and then mostly 9¢ to 11¢ higher. Soybean futures closed mostly 27¢ to 31¢ higher — both supported by the hotter, drier weather forecast in the Corn Belt.

Live Cattle futures closed narrowly mixed, from an average of 37¢ lower to an average of 15¢ higher, supported by positive weekly exports but pressured from lower cash prices and weaker wholesale beef values.

Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on light demand through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.

So far, this week, live prices are $1 lower in the Southern Plains at $135/cwt., $1.00-$5.50 lower in Nebraska at $138 and steady in the western Corn Belt at $141-$145. Dressed prices are $2 lower in Nebraska at $225 and $3-$7 lower in the western Corn Belt at $224-$225.

Choice Boxed beef cutout value was 22¢ lower Thursday afternoon at $267.77/cwt. Select was $1.00 lower at $240.81/cwt.

Net U.S. beef export sales of 25,300 metric tons were 6% more than the previous week and 66% more than the prior four-week average, according to the U.S. Export Sales report for the week ending July 21. Increases were primarily for South Korea, Japan, China, Taiwan and Mexico.

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Major U.S. financial indices closed higher again Thursday, apparently driven by strong quarterly earnings reports from Apple and Amazon.

The Dow Jones Industrial Average closed 332 points higher. The S&P 500 closed 48 points higher. The NASDAQ was up 130 points.

CME WTI Crude Oil futures closed 43¢ to 84¢ lower through the through the front six contracts.

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U.S. consumers reduced their restaurant visits in the second quarter of 2022, amid rising inflation and menu prices, according to The NPD Group (NPD).

Physical and online restaurant traffic declined 2% year over year in the second quarter and was 6% below the pre-pandemic level in the second quarter of 2019. Consumer restaurant spending for the quarter, which reflects higher costs in contrast to increased visits, was 2% higher year over year and 3% more than the same quarter in 2019.

“We see three ways consumers respond to higher menu prices. They trade down to lower-priced items, cut back on the number of items ordered, or reduce restaurant visits altogether,” says David Portalatin, NPD Food Industry Advisor. “Operators and manufacturers can win in this environment by differentiating value, understanding that value doesn’t always translate to the lowest price. Quality and value become a critical differentiator when consumers spend on a restaurant meal during these challenging times.”

Visits to quick service restaurants (QSRs), represented 82% of total restaurant traffic in the second quarter. They were 2% less year over year and 3% less than the pre-pandemic level for the same period in 2019. QSR fast casual restaurant traffic was 1% less than a year ago but was 8% more than same quarter in 2019.

Full service restaurant (FSR) visits, represented 18% of restaurant visits in the second quarter. They were 3% less than a year earlier and 20% less than the second quarter of 2019.

Feeder Cattle futures rose an average of $1.08 Wednesday, bolstered by strong cash demand.

Live Cattle futures edged an average of 13¢ higher, except for an average of 6¢ lower in the front two contracts, despite the weaker cash outlook for the week and wobbly beef prices.

Negotiated cash fed cattle trade was moderate on moderate demand in Nebraska through Wednesday afternoon, according to the Agricultural Marketing Service. Live prices were $1.00-$5.50 lower at $138/cwt. Dressed prices were $2 lower at $225.

Elsewhere, trade ranged from limited on light demand to mostly inactive on very light demand.

Prices in the Southern Plains were $1 lower on Tuesday at $135.

In the western Corn Belt last week, prices were $141-$145 on a live basis and $227-$232 in the beef.

Choice Boxed beef cutout value was $1.12 lower Wednesday afternoon at $267.99/cwt. Select was $2.07 lower at $241.81/cwt.

Higher oil prices helped lift Soybean futures mostly 15¢ to 26¢ higher while Corn futures were up mostly 3¢.

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Major U.S. financial indices closed higher Wednesday, after the Fed raised lending rates by another 75 basis points. Apparently, a wide swath of investors believe that inflation can be controlled while avoiding a recession.

The Dow Jones Industrial Average closed 436 points higher. The S&P 500 closed 102 points higher. The NASDAQ was up 469 points.

CME WTI Crude Oil futures closed $2.28 to $2.50 higher through the front six contracts.

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Inflation is now the key risk to meat and poultry consumption, as the impact of COVID-19 on consumer food spending is diminishing, according to The Quarterly from CoBank’s Knowledge Exchange. Retail meat and poultry prices were 18% higher in May compared to 2021 and both spot market supplies and freezer inventories are below pre-pandemic levels. The combination of tight supplies and steady demand kept meat prices 20% higher than the five-year average for the March-May period, say CoBank analysts.

Among the report highlights:

• Effects from the pandemic and Ukraine war continue to reverberate through the global economy. Food and energy prices remain high, though prices for underlying commodities have lost upward momentum as economic fears rise.
• After more than two years, Covid-related supply chain complications are finally easing and various metrics indicate improvements to supply chain performance both domestically and globally. However, those improvements have been modest and agricultural supply chains in particular remain broadly mired in dysfunction.

“Warehouse and inventory costs are still rising at near-peak levels, and transportation costs are rising at a much higher rate than pre-pandemic,” says Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “Grain rail car availability and prices were at multi-year lows and highs, respectively, in the second quarter. Although as consumer purchases of goods continues to soften, supply chains will slowly recover.”

• Declining cattle supplies are expected to converge with excess processing capacity over the next 12-18 months, which should contribute to more favorable conditions for producers.