Negotiated cash fed cattle trade was undeveloped through Tuesday afternoon.
Live Cattle futures edged higher with the firm fundamental outlook—at least static demand levels and weather-dampened beef production—for the near term. Feeder Cattle softened, likely due most to positioning after the previous session’s strong gain.
Live Cattle futures closed an average of 30¢ higher (5¢ higher to 97¢ higher in spot Feb).
Other than an average of 12¢ higher in Sep and Oct, Feeder Cattle futures closed an average of 32¢ lower.
Corn futures closed fractionally higher to 1¢ higher.
Soybean futures closed 1¢ to 2¢ higher.
Wholesale beef values were weak on light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 63¢ lower Tuesday afternoon at $217.02/cwt. Select was 31¢ lower at $213.10.
Major U.S. financial indices closed higher again Tuesday, buoyed by positive quarterly earnings reports. Also, there may have been some betting on the President’s State of The Union address scheduled for Tuesday night.
The Dow Jones Industrial Average closed 172 points higher. The S&P 500 closed 12 points higher. The NASDAQ was up 54 points.
Agricultural producers were more optimistic about the agricultural economy in January, but they remain concerned about farmland values, according to results from the January Purdue University/CME Group Ag Economy Barometer.
The barometer rebounded 16 points from December, to 143 in January. It’s based on 400 survey responses from agricultural producers across the country.
“This survey provided us with the first opportunity to measure farmers’ sentiment following the announcement of USDA’s second round of Market Facilitation Program (MFP) payments and the passage of the 2018 Farm Bill,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “It appears that these two announcements provided a significant boost to producer sentiment regarding both current and future economic conditions.”
In January, both of the barometer’s two sub-indices increased month to month. The Index of Current Conditions rose 3 points to 132. The Index of Future Expectations increased 13 points to 148. Pessimism about farmland values increased, though. According to the January survey, the percentage expecting higher farmland values over the next 12 months declined 4 points to 13%. Those expecting higher values in the next five years declined 2 points to 48%.