Negotiated cash fed cattle trade was mostly inactive on very light demand in Nebraska and the Western Corn Belt through Tuesday afternoon, according to the Agricultural Marketing Service. In Nebraska last week, live sales were at $120-$123/cwt. and dressed at $195/cwt.
In the Western Corn Belt last week, live sales traded from $120-$124/cwt. and dressed sales from $195-$202/cwt.
Trading was at a standstill in the Southern Plains. Last week in the Southern Plains, live sales traded at $119/cwt.
Cattle futures drifted lower Tuesday amid likely profit taking and with traders awaiting cash direction.
Feeder Cattle futures closed an average of 50¢ lower, except for unchanged in the back contract.
Live Cattle futures closed an average of 42¢ lower, except for an average of 20¢ higher in the back three contracts.
Wholesale beef prices continued to gain on Labor Day stocking. Choice boxed beef cutout value was $1.80 higher Tuesday afternoon at $269.73/cwt. Select was $3.02 higher at $253.94/cwt.
Grain futures on Tuesday battled between tougher crop conditions and a mixed to favorable weather forecast.
Corn futures closed fractionally lower to 3¢ lower.
Soybean futures closed 1¢ to 5¢ higher through Jan ’22, then fractionally lower to 11¢ lower.
Major U.S. financial indices closed lower on Tuesday, led by declines in tech stocks and consumer-reliant companies.
The Dow Jones Industrial Average closed 86 points lower. The S&P 500 closed 21 points lower. The NASDAQ closed 180 points lower.
The International Monetary Fund (IMF) left projections for global economic growth this year at 6.0%, in the latest quarterly World Economic Outlook Update (WEOU). Compared to the last update, IMF increased expectations for global growth next year by 0.5% to 4.9% mostly based on higher expectations for advanced economies, particularly for the U.S.
IMF projections for inflation are a mixed bag.
“Recent price pressures for the most part reflect unusual pandemic-related developments and transitory supply-demand mismatches. Inflation is expected to return to its pre-pandemic ranges in most countries in 2022 once these disturbances work their way through prices, though uncertainty remains high,” according to the WEOU. “…Central banks should generally look through transitory inflation pressures and avoid tightening until there is more clarity on underlying price dynamics…There is, however, a risk that transitory pressures could become more persistent and central banks may need to take preemptive action.”
Among risks to the downside, IMF cites:
- Slower-than-anticipated COVID-19 vaccine rollout, allowing allow the virus to mutate further.
- Rapidly tightening financial conditions; for instance, stemming from a reassessment of the monetary policy outlook in advanced economies if inflation expectations increase more rapidly than anticipated.
“Vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs: those that can look forward to further normalization of activity later this year (almost all advanced economies) and those that will still face resurgent infections and rising COVID death tolls,” according to the report. “The recovery, however, is not assured even in countries where infections are currently very low, so long as the virus circulates elsewhere.”