Negotiated cash fed cattle trade ranged from a standstill to mostly inactive on very light demand through Tuesday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, live prices were $142/cwt. in the Southern Plains and Colorado; $140 in Nebraska and the western Corn Belt. Dressed prices were $220.
Cattle futures drifted amid lackluster trading interest Tuesday.
Live Cattle futures closed an average of 19¢ lower, except for 5¢ higher in spot Dec.
Feeder Cattle futures closed an average of 56¢ lower (22¢ lower in spot Jan to $1.17 lower in the back contract).
Choice boxed beef cutout value was $4.50 lower Tuesday afternoon at $268.03/cwt. Select was $2.17 lower at $255.68.
Corn futures closed mostly 2¢ higher.
Soybean futures closed 7¢ to 11¢ lower through the front five contracts and then mostly 2¢ to 3¢ higher.
Major U.S. financial indices extended gains decisively Tuesday, led by tech stocks.
The Dow Jones Industrial Average closed 492 points higher. The S&P 500 closed 95 points higher. The NASDAQ was up 461 points.
West Texas Intermediate Crude Oil futures on the CME closed $2.40 to $2.56 higher through the front six contracts; about $5.00 higher in the past two sessions.
Agricultural producer sentiment is declining as production costs increase, according to the latest Purdue University/CME Group Ag Economy Barometer.
Month to month, the Ag Economy Barometer slipped 5 points to 116 in November with pessimism increasing for both current and future conditions. The Index of Current Conditions declined 7 points in November to a reading of 128 and the Index of Future Expectations fell 4 points to 110. All three measures were the lowest for this year.
“Farmers are facing sharp rises in production costs coinciding with fluctuating crop and livestock prices, the prospect of changing environmental and tax policy, uncertainty over COVID-19, as well as a host of other issues, all of which are negatively impacting farmer sentiment” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
In November, 43% of survey respondents said they expect farm input prices to rise by more than 16% in the upcoming year. This compares with the actual average rate of farm input price inflation over the past decade of less than 2%.
Somewhat surprisingly, given the concerns about rising input costs, 52% of corn/soybean producers expect cash rental rates to rise in 2022, compared to 43% in October. This marks the highest percentage of producers reporting that they expect rental rates in 2022 to rise since the May 2021 survey.