It was deja vu all over again Wednesday as Wheat and Soybean futures blasted higher, carrying Corn along for the ride and weighing on Cattle futures.
Chicago wheat was 27¢ to 32¢ higher through May ’23. Soybean futures closed 19¢ to 40¢ higher in the front five contracts and then mostly 4¢ to 6¢ higher. Corn futures closed 5¢ to 9¢ higher through Jly ‘23 and then 1¢ to 2¢ higher.
Feeder Cattle futures closed average 85¢ lower (20¢ lower at the back to $1.45 lower in spot Mar).
Live Cattle futures closed an average 61¢ lower (25¢ to $1.27 lower).
Negotiated cash fed cattle trade ranged from a standstill to limited on light demand through Wednesday afternoon, according to the Agricultural Marketing Service. However, some private reports from the North suggested higher prices for the day.
Prices last week were $142/cwt. on a live basis in Nebraska and the Southern Plains and $142-$144 in the western Corn Belt. Dressed prices were at $226.
Choice Boxed beef cutout value was 76¢ lower Wednesday afternoon at $260.88/cwt. Select was $4.68 lower at $258.96.
******************************
Major U.S. financial indices dredged lower Wednesday with follow-through pressure from the Russia-Ukraine turmoil.
The Down Jones Industrial Average closed 464 points lower. The S&P 500 closed 79 points lower. The NASDAQ was down 344 points.
******************************
Creighton University’s Rural Mainstreet Index (RMI) edged higher in February to 61.5, from 61.1 the previous month — above growth neutral for the 15th consecutive month. The RMI is based on a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
“Strong grain prices, the Federal Reserve’s record-low short-term interest rates, and growing agricultural exports have underpinned the Rural Mainstreet Economy,” says Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The region’s farmland price index decreased to 78.8 from January’s 88.5 and December’s record high of 90.0. February’s reading represented the 17th consecutive month the index was above growth neutral.
The February farm equipment-sales index slipped to 72.0 from 72.4 in January — the 15th straight month above growth neutral.
This month, bankers were asked to project corn and soybean prices six months down the road. On average, bank CEOs expect corn prices per bushel to decline by 2.6% and soybean prices per bushel to drop by 2.3% over the next six months.