Steady to stronger negotiated cash fed cattle prices helped Live Cattle futures closed an average of 65¢ higher.
Negotiated cash fed cattle trade was moderate through Tuesday afternoon in Nebraska and the Southern Plains, according to the Agricultural marketing Service.
So far this week, live prices are steady in the Southern Plains at $140/cwt. and steady to $1 higher in Nebraska at $145-$146. Dressed prices are unevenly steady at $232 in Nebraska.
Feeder Cattle futures closed an average of $1.18 lower, pressured by Corn futures, which were up mostly 3¢ to 9¢, supported by slow planting progress. Soybean futures closed mostly 1¢ to 11¢ higher.
Choice Boxed beef cutout value was $2.43 lower Tuesday afternoon at $264.17/cwt. Select was 29¢ lower at $256.23.
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Major U.S. financial indices fell Tuesday on mixed corporate earnings, news of Russia cutting energy supplies to Poland and Bulgaria, continued Covid lockdowns in China and uncertainty over the Fed’s ability to rein in inflation without the economy weakening.
The Dow Jones Industrial Average closed 809 points lower. The S&P 500 closed 121 points lower. The NASDAQ was down 514 points.
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“Every producer wants fair market value for the animals we raise and produce and many of us achieve that true value through value-based alternative marketing arrangements. Accordingly, I do not support a government mandate, of any kind,” said Shawn Tiffany, Kansas Livestock Association president-elect. That was during Tuesday’s Senate Committee on Agriculture, Nutrition, and Forestry hearing to discuss transparency and oversight within cattle marketing, specifically the Cattle Price Discovery and Transparency Act.
The Cattle Price Discovery and Transparency Act would mandate regional minimums for cash fed cattle trade. Tiffany testified in opposition to a government mandate as it could result in fewer marketing opportunities and less incentive for producers to invest in genetics and innovative production techniques that lead to higher-quality beef.
“Regardless of how well intentioned the concept of helping producers obtain fair market value for their animals, the end result will be fewer marketing options for U.S. producers,” Tiffany explained.