Negotiated cash fed cattle trade was undeveloped through Wednesday afternoon.
There were only 156 head (two lots) offered in the weekly Fed Cattle Exchange auction. One lot (97 heifers) sold for delivery at 1-9 days for an average of $119/cwt.
Cattle futures continued to build on recent gains Wednesday, buoyed by last week’s large fed cattle harvest, as a barometer of domestic demand strength, in tandem with stronger cash prices.
Live Cattle futures closed an average of 39¢ higher.
Feeder Cattle futures closed an average of 34¢ higher.
Corn futures closed mostly unchanged to fractionally mixed.
Wholesale beef values were sharply lower on Choice and steady on Select with light to moderate demand and moderate to heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $2.21 lower Wednesday afternoon at $212.25/cwt. Select was 18¢ higher at $201.57.
Although closing off of session highs, major U.S. financial indices settled higher Wednesday, reportedly fueled by increasing optimism regarding U.S.-China trade talks.
The Dow Jones Industrial Average closed 157 points higher. The S&P 500 closed 14 points higher. The NASDAQ was up 66 points.
Congress passed the new Farm Bill, overwhelmingly in both the Senate and House of Representatives. All that’s left is President Trump’s, signature, which seems likely, based on his remarks ahead of the congressional vote.
“America’s cattlemen and women want common sense and certainty from Congress this holiday season and throughout the year; today, they received that through the passage of the Farm Bill,” said Kevin Kester, president of the National Cattlemen’s Beef Association. “Certainty that a Foot-and-Mouth Disease vaccine bank will be authorized and funded. Certainty that important conservation programs will be reauthorized and funded. And certainty that trade promotion and access to foreign markets will remain a priority in the years to come.”
“The passage of the 2019 Farm Bill is good news because it provides a strong safety net for farmers and ranchers, who need the dependability and certainty this legislation affords,” says U.S. Agriculture Secretary, Sonny Perdue. “This Farm Bill will help producers make decisions about the future, while also investing in important agricultural research and supporting trade programs to bolster exports. While I feel there were missed opportunities in forest management and in improving work requirements for certain SNAP recipients, this bill does include several helpful provisions and we will continue to build upon these through our authorities. I commend Congress for bringing the Farm Bill across the finish line and am encouraging President Trump to sign it.”
“Feeding an increasing global population is not simply an agriculture challenge, it is a national security challenge,” said Senator Pat Roberts (Rep, KS) after the Senate passed the conference report. “This means we need to grow more and raise more with fewer resources. That will take investments in research, new technology, lines of credit, and proper risk management. It takes the government providing tools, and then getting out of the producer’s way.”