Lower Corn futures helped Feeder Cattle futures firm Tuesday and close narrowly mixed, from an average of 15¢ lower to an average of 34¢ higher.
Live Cattle futures closed an average of 75¢ lower, except for 37¢ higher in in the back contract, with pressure tied, in part, to eroding open interest.
Corn futures softened Tuesday with likely profit taking, closing mostly 2¢ to 3¢ lower.
Soybean futures closed mostly 4¢ to 5¢ lower.
KC HRW Wheat closed mostly 4¢ to 6¢ higher through Mar ‘25.
Negotiated cash fed cattle trade was at a standstill in all major cattle feeding regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices (FOB) live prices were $180/cwt in the Southern Plains and $188 in Nebraska and the western Corn Belt, where dressed prices (FOB) were $295.
Choice boxed beef cutout value was 6¢ higher Tuesday afternoon at $304.22/cwt. Select was 56¢ higher at $277.55/cwt.
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Major U.S. financial indices edged higher Tuesday, amid mixed quarterly corporate earnings.
The Dow Jones Industrial Average closed 26 points higher. The S&P 500 closed 12 point higher. The NASDAQ was up 85 points.
West Texas Intermediate Crude Oil futures (CME) closed 60¢ to 89¢ higher through the front six contracts.
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Rural economic growth continues, at least in one region, according to Creighton University’s Rural Mainstreet Index (RMI). Although it remained above growth-neutral for the fourth consecutive month, the RMI declined from 56.9 in June to 55.6 in July. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. It is based on a survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
“After negative growth during the first quarter of this year, the Rural Mainstreet economy experienced positive but slow economic growth for the second quarter and has now started the third quarter on a healthy note,” says Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The region’s farmland price index rose to 64.6 from 59.3 in June and 56.3 in May. This was the 34th straight month that the index has advanced above 50.0.
Bankers reported that, on average, non-farm investors secured approximately 17.1% of farmland sales in their area over the past six months. This is almost double the 9.1% reported by bankers in April 2022 when the same question was asked.
Bank CEOs were asked to comment on the Federal Reserve’s current short-term interest rate policy. More than nine of 10 (92.5%) indicated that the Fed should cease raising rates. Only 7.5% indicated that the Fed should continue to raise short-term interest rates.
“Higher short-term interest rates produced by Federal Reserve’s rate hikes over the past year have posed a significant threat to community banks by expanding the costs of customer deposits while the rates on bank loans have risen little over the same time period,” Goss says.