Negotiated cash fed cattle was slow on light demand in the Southern Plains through Wednesday afternoon, where a light test brought steady money with last week at $175/cwt. on a live basis.
Elsewhere, trade ranged from limited on light demand to a standstill with too few transactions to trend, according to the Agricultural Marketing Service.
Live prices last week were $182-$184 in Nebraska and $180-$184 in the western Corn Belt. Dressed prices were $290.
Choice boxed beef cutout value was $1.14 lower Wednesday afternoon at $305.92/cwt. Select was 15¢ lower at $291.46/cwt.
Cattle futures mostly softened Wednesday, with consolidation and awaiting weekly cash fed cattle trade.
Feeder Cattle futures closed an average of 41¢ lower (2¢ lower at the back to $1.25 lower at the front), except for 70¢ and 25¢ higher in Aug and Sep, respectively.
Live Cattle futures closed an average of 87¢ lower (25¢ lower at the back to $1.60 lower toward the front).
Grain futures were pressured Wednesday by Poland’s announcement to allow grain to flow through its country from Ukraine, while maintaining its closure to grain purchases from that nation.
Corn futures closed mostly 3¢ to 8¢ lower.
KC HRW Wheat closed 14¢ to 19¢ lower.
Soybean futures closed 8¢ to 12¢ lower through Sep ‘24 and then 4¢ to 6¢ lower.
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Major U.S. financial indices closed flat again Wednesday amid mixed quarterly earnings reports.
The Dow Jones Industrial Average closed 79 points lower. The S&P 500 closed fractionally lower. The NASDAQ was up 3 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.60 to $1.70 lower through the front six contracts.
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Odds of the world economy achieving a soft landing of lower inflation and steady growth continue to recede, according to the latest quarterly World Economic Outlook (WEO) from the International Monetary Fund.
“The global economy remains on track for a gradual recovery from the pandemic and Russia’s war in Ukraine. China’s reopened economy is rebounding strongly. Supply chain disruptions are unwinding while the dislocations to energy and food markets caused by the war are receding,” says Pierre-Olivier Gourinchas, IMF economic counsellor and director of the research department. “The massive and synchronized tightening of monetary policy by most central banks is starting to bring inflation back towards its targets. At the same time, serious financial stability-related downside risks have emerged.”
The current WEO predicts a bottom in global economic growth this year at 2.8% before inching higher to 3% next year. Expected global inflation declines but slower than originally anticipated, from 8.7% last year to 7% this year and 4.9% next year.
“Inflation is much stickier than anticipated even a few months ago,” Gourinchas says. “While global inflation has declined, this reflects mostly the sharp reversal in energy and food prices, but core inflation, excluding energy and food prices, has still not peaked in many countries. It is expected to decline to 6.2% this year, still well above target.”
“Risks to the outlook are heavily skewed to the downside, with the chances of a hard landing having risen sharply,” according to the WEO Executive Summary. Financial sector stress could amplify and contagion could take hold, weakening the real economy through a sharp deterioration in financing conditions and compelling central banks to reconsider their policy paths.”