Negotiated cash fed cattle trade remained undeveloped through Thursday afternoon. There were a few early live sales in the western Corn Belt at $125/cwt., but too few to trend. Prices in that region last week were at $121-$123.
Cattle futures mostly edged lower, with the heaviest trade since the middle of last month.
Except for $3.00 lower in newly minted away Jun, Live Cattle futures closed an average of 22¢ lower.
Except for 25¢ higher in Oct, Feeder Cattle futures closed an average of 26¢ lower.
Wholesale beef values were lower on Choice and firm on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.17 lower Thursday afternoon at $208.25/cwt. Select was 51¢ higher at $202.63.
Corn futures closed 1¢ to 3¢ higher.
Soybean futures closed mostly 2¢ to 3¢ higher
Major U.S. financial indices closed sharply higher Thursday, with more optimism regarding China—this time, the move by that country to effectively interject more cash into its economy, via the lowering of reserve cash requirements for its banks.
The Dow Jones Industrial Average closed 330 points higher. The S&P 500 closed 27 points higher. The NASDAQ was up 119 points.
“Consumer strength the world over has prevented further slowing in the global economy. Without that strength, several European countries and Japan would most likely have fallen into recession by now,” says Dan Kowalski, vice president of CoBank’s Knowledge Exchange Division (CKED), in that organization’s 2020 Outlook. “The powerhouse economies of Europe, Japan, and China depend heavily on manufacturing and exports, and have been hit exceptionally hard as global trade growth has plumbed decade lows.
“We expect business investment and exports in all three economies to continue slowing through early 2020. Europe’s growth will be weighed down by risks of a no-deal Brexit, along with the potential for U.S. automobile tariff tensions to resurface. Japan will try to keep consumers spending and prevent economic contraction despite another increase in its national sales tax, this time from 8% to 10%. China will make good on its goal to double the size of its economy between 2010 and 2020, but it will do so while growing at its slowest pace since 1990. Its GDP growth will fall below 6% as Beijing attempts to balance the need for credit while containing financial risks.”
The International Monetary Fund (IMF), in October’s quarterly World Economic Outlook, projected global economic growth at 3.0% for 2019 and at 3.4% for 2020.
“The risks to this baseline outlook are significant,” explained IMF analysts. “…should stress fail to dissipate in a few key emerging market and developing economies that are currently underperforming or experiencing severe strains, global growth in 2020 would fall short of the baseline. Further escalation of trade tensions and associated increases in policy uncertainty could weaken growth relative to the baseline projection.”