Negotiated cash fed cattle trade was undeveloped through Thursday afternoon.
Cattle futures softened but closed well off of session lows that came early, driven in part by the plummeting stock market (see below).
Live Cattle futures closed an average of 48¢ lower.
Except for an average of 35¢ lower in the back two contracts, Feeder Cattle futures closed an average of $1.22 lower.
Wholesale beef values were weak on Choice and higher on Select with light to moderate demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 59¢ lower Thursday afternoon at $212.67/cwt. Select was $1.36 higher at $198.22.
Maybe it still pays to leave that cash in the coffee can. Wall Street took a wild ride Thursday, with the Dow plunging nearly 800 points early on—driven in part by the overnight free fall in stock index futures —before ultimately recovering most of the loss. That followed the previous session’s steep losses.
Recent pressure includes the yield curve inversion, as a possible barometer of looming domestic economic recession, as well as fears of a global economic slowdown, tied to lingering trade issues. Support for the day included reports that the Fed may be less aggressive in raising interest rates after the December meeting.
The Dow Jones Industrial Average closed 79 points lower. The S&P 500 closed 4 points lower. The NASDAQ was up 29 points.
“On average, bankers estimated that farmland prices declined by 4.0% over the past 12 months and expect farmland prices to fall by another 3.2% over the next 12 months,” according to the most recent Rural Mainstreet Economy Report from Creighton University.
“More than ever, farmland values are extremely dependent upon quality, and location, location, location,” says Fritz Kuhlmeier, CEO of Citizens State Bank at Lena, IL.
The monthly report is built from surveys of rural community bank CEOs in a 10-state region dependent on agriculture and/or energy. It includes the Rural Mainstreet Index (RMI), a real-time measure of rural economic health. The overall index expanded to 54.3 in October from 51.5 in September. The index ranges between 0 and 100 with 50.0 representing growth neutral. That’s the ninth consecutive month the index climbed above growth neutral.
“Our surveys over the last several months indicate that the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” says Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.