Cattle futures surged higher Tuesday with little apparent cause other than oversold conditions and perhaps easing headline pressure, at least for the day.
Toward the close, Live Cattle futures were an average of $4.75 higher. Feeder Cattle futures were an average of $8.41 higher.
Negotiated cash fed cattle trade was mostly inactive on light to moderate demand in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $215-$220/cwt. in the Texas Panhandle, mainly $220 in Kansas, mostly $210 in Nebraska and mainly $208-$210 in the western Corn Belt. Dressed delivered prices were $330 in Nebraska and $328-$330 in the western Corn Belt.
Choice boxed beef cutout value was $4.17 lower Tuesday afternoon at $364.72/cwt. Select was $7.10 lower at $350.78.
Grain and Soybean futures were mixed on Tuesday.
Toward the close and through Jly contracts, Corn futures were 3¢ to 5¢ higher, helped along by strong demand.
KC HRW Wheat futures were 6¢ higher with traders likely adding some geopolitical risk.
Soybean futures were 3¢ to 4¢ lower as traders await confirmation of China making good on its deal to purchase more.
******************************
Major U.S. financial indices were higher Tuesday, supported by cryptocurrency and AI stocks, which had led them lower the previous day.
The Dow Jones Industrial Average closed 185 points higher. The S&P 500 closed 16 points higher. The NASDAQ was up 137 points.
Though mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 69¢ to 73¢ lower through the front six contracts.
******************************
Agricultural producer sentiment increased in November, according to the Purdue University/CME Group Ag Economy Barometer, which climbed 10 points from October to 139, its highest level since June.
The increase was driven primarily by increased producer optimism for the future, as the Future Expectations Index climbed 15 points to 144, while the Current Conditions Index dipped 2 points to 128.
“Producers became more optimistic about U.S. agricultural trade prospects in November. That coincided with a rise in crop prices, which led to farmers’ improved expectations for their farms’ financial performance and an improvement in farmer sentiment,” says Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture.
The Farm Financial Performance Index increased by 14 points to 92 in November. The percentage of producers expecting better financial results this year grew to 24%, up from 16% in October.
Producers were also more optimistic about future agricultural trade prospects in November. In response to a question included in every barometer survey since January 2019, just 7% of respondents said they expect U.S. agricultural exports to weaken over the next five years, down from 14% in October and 30% in March.