Cattle futures gained Wednesday, with apparent technical support, continued bullish long-term fundamentals and continued erosion in Corn futures.
Feeder Cattle futures closed an average of $1.47 higher (55¢ to $2.62 higher).
Live Cattle futures closed an average of 60¢ higher (32¢ higher at the back to $1.12 higher in spot Oct).
Negotiated cash fed cattle trade ranged from slow on light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service.
So far this week, FOB live prices are $2-$3 lower in the western Corn Belt at $183-$185/cwt., and dressed delivered prices are $4 lower in Nebraska at $290 in a light test.
Last week, FOB live prices were $184-$185/cwt. in the Southern Plains and $186-$187 in Nebraska. Dressed delivered prices were $294.
Choice wholesale beef prices continued the seasonal turn higher. Choice boxed beef cutout value was $1.52 higher Wednesday afternoon at 307.50/cwt. Select was $2.34 lower at $281.66/cwt.
Corn futures closed mostly 2¢ to 3¢ lower.
Soybean futures closed mostly 2¢ to 7¢ lower.
KC HRW Wheat closed mostly 8¢ to 14¢ lower.
Major U.S. financial indices closed lower Wednesday, pressured by disappointing quarterly earnings from Alphabet and resurgent 10-year Treasury yields.
The Dow Jones Industrial Average closed 105 points lower. The S&P 500 closed 60 points lower. The NASDAQ was down 318 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.65 to $1.72 higher through the front six contracts.
Food insecurity in the United States increased year over year in 2022, according to the recently published Household Food Security in the United States in 2022 from USDA’s Economic Research Service (ERS).
Last year, 12.8% of U.S. households (17 million) were food insecure at some time during the year, meaning they had difficulty providing enough food for all their members because of a lack of resources, according to the report. In 2021, the number was 10.2%. It was 10.5% in 2020.
Moreover, 5.1% of U.S. households experience very low food security in 2022, compared to 3.8% in 2021 and 3.9% in 2020. Very low food security means the food intake of some household members was reduced and normal eating patterns were disrupted.
“The 2022 Household Food Security in the United States report is a sobering reminder that, while the vast majority of Americans are able to affordably feed themselves and their families, too many of our neighbors struggle to put healthy food on the table,” says Tom Vilsack, U.S. Agriculture Secretary. “These numbers are more than statistics. They paint a picture of just how many Americans faced the heartbreaking challenge last year of struggling to meet a basic need for themselves and their children.”
The typical (median) food-secure household spent 15% more on food than the typical food-insecure household of the same size and composition, according to the report. Estimates include food purchases with Supplemental Nutrition Assistance Program (SNAP) benefits.
“About 55% of food-insecure households in the survey reported that in the previous month, they participated in one or more of the three largest Federal nutrition assistance programs,” according to the report. Those programs are: SNAP; the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); the National School Lunch Program.