Cattle futures were narrowly mixed Wednesday, awaiting the week’s cash direction.
Before settlement, Live Cattle futures were an average of 34¢ lower. Feeder Cattle futures were narrowly mixed, from an average of 55¢ lower to an average of 29¢ higher with the most support in nearby months.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $190/cwt. in the Southern Plains, $198 in Nebraska and $196-$198 in the western Corn Belt. Dressed delivered prices were $312/cwt.
Choice boxed beef cutout value was 29¢ higher Wednesday afternoon at $314.77/cwt. Select was $1.22 lower at $300.16/cwt.
Grain and Soybean futures were narrowly mixed Wednesday.
Heading into the close, through Jly ’25 contracts, Corn futures were 3¢ to 6¢ lower. Kansas City Wheat futures were fractionally lower to 2¢ lower. Soybean futures were 1¢ to 4¢ higher.
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Major U.S. financial indices closed higher Wednesday supported by doveish Fed comments suggesting interest rate cuts could be on the table in September as inflation moderates and economic growth slows.
The latest, closely watched ADP® National Employment Report™ pointed to slowing job and wage growth. Private sector employment increased by 122,000 jobs in July, less than expected, and annual pay was up 4.8% year-over-year, according to the report.
“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” says Nela Richardson, ADP chief economist. “If inflation goes back up, it won’t be because of labor.”
The Dow Jones Industrial Average closed 99 points higher. The S&P 500 closed 85 points higher. The NASDAQ was up 451 points.
Heading toward the close, West Texas Intermediate Crude Oil futures on the CME were $2.90 to $3.76 higher through the front six contracts, supported by rising geopolitical tensions in the Middle East.
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The overall Rural Mainstreet Index (RMI) sank below growth neutral for the 11th consecutive month, according to the July survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Specifically, the region’s overall reading for July sank to 41.3, its lowest reading since November 2023. The June reading was 41.7. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
Weak agriculture commodity prices, sinking agriculture equipment sales and declining farm exports drove the decline, according to Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Among survey highlights:
- The farm equipment sales index for July plummeted to 19.0, its lowest level in more than seven years, and down from June’s 31.8. “This is the 12th straight month that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and weak grain prices are having a negative impact on the purchases of farm equipment,” Goss says.
- On average, bankers expect farmland prices to drop by 3.4% over the next 12 months.
- Rural bankers remain very pessimistic about economic growth for their area over the next six months. The July confidence index slumped to 28.3, its lowest level this year, and down from June’s 29.2.