Cattle Current Daily—Aug. 4, 2022

Cattle Current Daily—Aug. 4, 2022

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.

******************************

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.

******************************

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.”

2022-08-03T19:50:22-05:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.