Negotiated cash fed cattle trade developed Wednesday on moderate trade and demand. Live prices were steady in the Southern Plains at $109/cwt., steady to $1.50 higher in Nebraska at $111-$113 and $1 higher in the western Corn Belt at $112-$113. Although too few to trend, early dressed sales were steady to higher at $178-$180.
Likewise, 53 Kansas heifers sold for a weighted average price of $109 (1-17 day delivery) in the weekly Fed Cattle Exchange auction. That was out of an offering of 392 head.
Live Cattle futures closed an average of 62¢ higher, from 40¢ higher at the back to $1.35 higher in spot Aug.
Feeder Cattle futures closed sharply lower, though, beaten down by light trade and the surge in grain futures.
Feeder Cattle futures closed an average of $1.52 lower.
Wholesale beef values were weak to lower on light demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.22 lower Wednesday afternoon at $219.25/cwt. Select was 63¢ lower at $195.36.
Corn futures closed mostly 12¢ to 19¢ higher through Jul ‘20, and then mostly 1¢ to 3¢ higher.
Soybean futures closed 9¢ to 10¢ higher though Aug ’20 and then mostly 6¢ higher.
Major U.S. financial indices closed sharply higher Wednesday—record high for the DJIA and NASDAQ—as investors seemed to think weaker labor data will hasten the Fed’s decision to cut rates.
Private sector, non-farm employment increased by 102,000 in June, according to the closely watched ADP National Employment report. That was about 24% less than the trade expected.
The Dow Jones Industrial Average closed 179 points higher. The S&P 500 closed 22 points higher. The NASDAQ was up 61 points.
“Financial stress for many in agriculture continues to build amid unprecedented uncertainty from trade disputes and weather disasters,” say analysts with CoBank’s Knowledge Exchange Division (KED), in that organization’s Quarterly U.S. Economic Rural Review. “Nearly all sectors of agriculture were affected last quarter by the inundation of spring rains that kept farmers out of fields throughout the U.S. The amount of acreage lost to prevented planting will remain the major unknown in the months ahead for ag commodities markets.”
In fact, the KED folks say elevated corn prices could alter the modest beef cow herd growth previously expected.
On the other side of the ledger, U.S. beef exports and other meat exports could benefit from African Swine Fever in Southeast Asia.
“An expected decline in Chinese pork production will spur a surge of beef, pork, and chicken imports into China as it tries to fill a shortfall in animal protein supply that no single pork-producing country will be able to fill,” say KED analysts.
Among other highlights from the KED Quarterly Review:
Global economic development continues to slide as tariffs drag on global trade and manufacturing.
Despite domestic GDP growth of 3.1% in the first quarter, the pace of investment spending, manufacturing, and demand for capital goods have eased in recent months, and the slowdown trend is widely expected to persist through the remainder of the year.