Cash fed cattle trade remained undeveloped through Tuesday afternoon.
Cattle futures sagged lower toward the end of the session, following the reprieve from negative trade news and wild gyrations the previous day.
Live Cattle futures closed an average of 93¢ lower.
Other than 5¢ and 22¢ higher in Sep and Oct, Feeder Cattle futures closed an average of 63¢ lower.
Wholesale beef values were higher on moderate to good demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.08 higher Tuesday afternoon at $215.78/cwt. Select was 98¢ higher at $192.65.
Corn futures closed 1¢ to 6¢ lower.
Soybean futures closed mostly 2¢ to 3¢ lower.
Major U.S. financial indices rebounded from the previous day’s massive selloff.
Apparently, primary support came from reports that China intends to maintain its currency at higher levels than appeared Monday, when that nation allowed its currency to slide to decade-low values, in retaliation for the recently announced additional tariffs on Chinese imports.
The Dow Jones Industrial Average closed 311 points higher. The S&P 500 closed 37 points higher. The NASDAQ was up 107 points.
Improved expectations for current economic conditions helped drive producer sentiment sharply higher in July, according to the Purdue University/CME Group Ag Economy Barometer.
The overall Barometer reading of 153 in July was 27 points higher than the previous month and 52 points higher than in May. Results are based on a survey of 400 agricultural producers across the U.S (surveyed July 15-19).
Improving crop conditions after an extraordinarily wet planting season, combined with a late spring/early summer crop price rally, boosted farmer sentiment.
“The Corn Belt is continuing to see better crop conditions and that has farmers, at least momentarily, breathing a sigh of relief,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “However, the agricultural economy is still in flux. The impact of prevented planting on 2019 corn and soybean acreage and prices along with the outcome of trade talks with China remain unknown.”
The Index of Current Conditions, a sub-index of the ag barometer, increased 44 points in July to a reading of 141, marking the largest one-month improvement since data collection began in October of 2015. The barometer’s other sub-index, the Index of Future Expectations, increased 18 points from June, to a reading of 159 in July.
Mintert notes that improvement in producer sentiment occurred despite the fact that many producers were in the midst of filing prevented planting crop insurance claims and wondering about the size of the USDA’s 2019 Market Facilitation Payments (MFP).
Given the late planting season, USDA re-surveyed corn and soybean growers in July to better estimate actual planted acreage of both crops. In the meantime, the Ag Economy Survey asked corn and soybean participants whether they were taking a prevented planting payment on any of the corn or soybean acreage they intended to plant this year.
Of those planting corn, 25% said they were filing a prevented planting claim on some of their intended acreage: 61% said their prevented planting totaled 15% or more of their intended acreage; 42% said that they did not plant 25% or more of their intended acreage
For those with soybeans, 24% said they were filing a prevented planting claim on some of their intended acreage: 39% said their prevented planting totaled 15-25% of their intended acreage; 2% said they were unable to plant 25% or more of their intended acreage.