Traders continued to add risk premium to grain and Soybean futures Wednesday.
Corn futures closed mostly 9¢ to 18¢ higher.
KC HRW Wheat closed 31¢ to 41¢ higher.
Soybean futures closed mostly 12¢ to 14¢ higher.
Higher Corn futures weighed on Feeder Cattle, which closed an average of 61¢ lower (27¢ to $1.20 lower), except for an average of 10¢ higher in the back two contracts.
However, recent cash strength and cattle feeders’ continued resolve to hold cattle helped push Live Cattle future an average of 43¢ higher (5¢ to 75¢ higher).
Negotiated cash fed cattle trade ranged from inactive on very light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $186/cwt. in Nebraska, $184-$185 in the western Corn Belt and $175-$184 in Kansas on a light test. Dressed prices were $290-$292 in Nebraska and $290-$295 in the western Corn Belt. Live prices in the Texas Panhandle the previous week were $178.
Choice boxed beef cutout value was $1.09 lower Wednesday afternoon at $303.59/cwt. Select was 65¢ lower at $275.96/cwt.
Major U.S. financial indices continued to gain Wednesday, as quarterly earnings continue to surpass expectations.
The Dow Jones Industrial Average closed 109 points higher. The S&P 500 closed 10 points higher. The NASDAQ was up 4 points.
West Texas Intermediate Crude Oil futures (CME) closed 22¢ to 40¢ lower through the front six contracts.
The all-fresh aggregate retail beef price set a record in June at $7.57 per pound, which was 3¢ more than the previous monthly record established in October 2021, according to the Livestock Marketing Information Center (LMIC).
“Retail fresh beef prices are 3.1% higher than last year at this time,” LMIC analysts say in the latest Livestock Monitor. “Retail pork prices continued to decline, coming in at $4.68 per pound, about 5% lower than last June. Broiler retail prices ticked higher … Retail meat prices appear strong for beef and chicken, but domestic pork demand still seems to be struggling. Adding to pork complications is the new Prop 12 law, which will likely increase the amount of pork on the domestic market outside of California.”
Although the Consumer Price Index (CPI) continues to grow at a slowing pace, LMIC analysts note prices for food continued more than 5% higher year over year. They add that the meat index was only 0.6% higher.