Cattle Current Daily—Jan. 3, 2024

Cattle Current Daily—Jan. 3, 2024

Cattle futures rallied on Tuesday, supported by last week’s stronger cash fed cattle prices and more trade volume.

Feeder Cattle futures closed an average of $3.10 higher.

Live Cattle futures closed an average of $1.79 higher, ($1.15 to $3.42 higher), except for 82¢ lower in newly minted away Jun.

Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Tuesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early FOB live sales in the western Corn Belt at $175/cwt.

Last week, FOB live prices were $172 in the Southern Plains, $172-$173 in Nebraska and $172-$172.50 in the western Corn Belt. Dressed delivered prices were $273.

The five-area weighted average FOB live fed steer price last week was $1.73 higher at $172.24/cwt. The average dressed delivered price was $2.49 higher at $272.87.

Choice boxed beef cutout value was $5.37 lower Tuesday afternoon at 284.34/cwt. Select was $1.47 lower at $258.86/cwt.

The positive outlook for South America and likely technical selling helped shove Soybean futures lower, dragging Grain futures along.

Corn futures closed mostly 5¢ to 10¢ lower.

KC HRW Wheat futures closed mostly 9¢ to 13¢ lower.

Soybean futures closed 19¢ to 26¢ lower.

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Major U.S. financial indices closed mixed Tuesday with pressure on tech stocks.

The Dow Jones Industrial Average closed 25 points higher. The S&P 500 closed 27 points lower. The NASDAQ was down 245 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.03 to $1.27 lower through the front six contracts.

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Although U.S. agricultural producer expectations for inflation subsided, producer sentiment declined slightly in December, according to the Purdue University/CME Group Ag Economy Barometer.

The overall reading was 1 point lower month to month in December at 114.

Both subindices of the barometer, the Index of Current Conditions and the Index of Future Expectations, mirrored the slight decline, settling one point below their respective November figures at 112 and 115.

The Farm Financial Performance Index increased 2 points. Since late summer, the index has climbed 11 points. At year-end, it was 21 points above the low point for 2023, which occurred in May.

“The shift in farmers’ perception of financial performance during the fall quarter corresponds with USDA’s more optimistic 2023 farm income outlook released in late November, which was $10 billion higher than their previous forecast,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

Producers’ inflation expectations moderated, with 70% expecting inflation in 2024 to be less than 4%. By comparison, 50% of the producers anticipated an inflation rate of 6% or higher a year ago. When asked about interest rates, 34% of respondents said they anticipate rates declining in 2024 while 22% expect no change in interest rates in the upcoming year.

Farmers concerned about the risk of lower prices for crops and livestock decreased from 26% of respondents in December to 16% in January.

This month’s Ag Economy Barometer survey was conducted from Dec. 4-8.

2024-01-02T19:59:02-06:00

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