Negotiated cash fed cattle trade was moderate on moderate demand through Thursday afternoon in the Southern Plains and Nebraska. Live prices were steady to $1 lower in the Texas Panhandle at $137/cwt., mostly $1 lower in Kansas at $137 and $1-$2 lower in Nebraska at $144-$149, where dressed prices were $2 lower at $232.
Trade was limited on light to moderate demand in the western Corn Belt. Live prices the previous day were $150 — the top of last week’s range — and dressed prices were steady at $234.
Choice Boxed beef cutout value was 2¢ higher Thursday afternoon at $268.07/cwt. Select was 35¢ lower at $242.58.
Stronger grain futures pressured Feeder Cattle Thursday, while firmer beef values helped Live Cattle stay the course.
Feeder Cattle futures closed an average of 82¢ lower (42¢ to $1.05 lower).
Live Cattle futures closed an average of 18¢ higher, except for 10¢ lower in near Oct.
Grain and Soybean futures rallied back Thursday on oversold conditions and supportive outside markets.
Corn futures closed mostly 9¢ to 11¢ higher through Jly ‘23 and then mostly 2¢ to 5¢ higher.
Soybean futures closed mostly 38¢ to 43¢ higher through Jly ‘23 and then mostly 12¢ to 20¢ higher.
Major U.S. financial indices rallied higher Thursday, buoyed by a bounce-back in crude oil prices and perhaps optimism about the nation’s monthly employment report due out Friday.
The Dow Jones Industrial Average closed 346 points higher. The S&P 500 closed 57 points higher. The NASDAQ was up 259 points.
West Texas Intermediate Crude Oil futures on the CME closed $3.56 to $4.27 higher through the front six contracts.
The Purdue University/CME Group Ag Economy Barometer continued to decline in June, down 2 points to a reading of 97. The Index of Future Expectations fell 5 points to a reading of 96, marking the lowest level since October 2016. However, producers were slightly more optimistic regarding current conditions — the Index of Current Conditions improved 5 points to 99.
“Rising input costs and uncertainty about the future continue to weigh on farmer sentiment,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Many producers remain concerned about the ongoing escalation in production costs as well as commodity price volatility, which could lead to a production cost/income squeeze in 2023.”
The Farm Financial Performance Index, which is primarily reflective of income expectations for the current year, improved 2 points to a reading of 83 in June, yet remains at one of the index’s lowest readings over the past two years. When asked about expectations for their farm’s financial condition in June 2023 compared to June 2022, 51% of survey respondents said they expect their farms to be worse off financially. That was the most negative response to the benchmark question since data collection began in 2015.
Primary producer concerns continue to be input prices (43%), followed by input availability (21%), government policies (18%), and lower output prices (17%). Looking ahead to 2023, a majority of farmers expect to see another round of large input cost increases with 63% of producers expecting higher costs in 2023, on top of the large increases experienced in 2022.
The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between June 13-17.