Cattle futures closed narrowly mixed Monday, unable to get much lift from stronger cash prices or last week’s massive total cattle slaughter of an estimated 679,000 head under federal inspection.
Live Cattle futures closed narrowly mixed, from an average of 11¢ lower to an average of 18¢ higher.
Feeder Cattle futures closed narrowly mixed, from an average of 19¢ lower to an average of 32¢ higher.
Wholesale beef values were lower on light demand and moderate to heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 92¢ lower Monday afternoon at $223.64/cwt. Select was 81¢ lower at $206.49.
Corn futures closed fractionally lower to 1¢ lower.
Soybean futures closed mostly 5¢ to 7¢ higher.
Major U.S. financial indices closed lower on Monday, with no definitive source. Profit taking and rally fatigue could have been part of it, as well as ongoing skittishness regarding U.S-China trade talks.
The Dow Jones Industrial Average closed 105 points lower. The S&P 500 closed 9 points lower. The NASDAQ was down 34 points.
Agricultural producer sentiment rose 17 points month to month in November, to the second highest level of the year, according to the most recent Purdue University/CME Group Ag Economy Barometer.
“Except in the northern Corn Belt, farmers were wrapping up their fall harvest in November and yields were better than expected earlier this year, which helped boost sentiment along with news that the trade dispute might be settled soon,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Since early fall, cattle prices also rallied substantially, helping make both cattle ranchers and feeders feel better about their operations’ finances.”
The Index of Current Conditions—one sub-index of the Barometer—soared 38 points to 153 in November. The Index of Future Expectations edged 7 points higher. The barometer is based on a mid-month survey of 400 U.S. crop and livestock producers.
Confidence in a quick resolution to the U.S.-China trade dispute increased to its highest point since the question was first posed in March of this year. In November, 57% of respondents say they expect a resolution soon; only 29% did in August.
Moreover, 80% of respondents expect the trade dispute to be resolved in a way that favors U.S. agriculture, up 5% from the previous month.