Negotiated cash fed cattle trade was at a standstill in the Texas Panhandle through Thursday afternoon, according to the Agricultural Marketing Service. Elsewhere, it was limited on light to moderate demand.
So far this week, live sales are steady to $4 higher in the Texas Panhandle at $120/cwt., steady in Kansas at $119 to $120 and steady at $120 in Nebraska and the western Corn Belt. Dressed trade is steady with the upper end of last week’s range at $190-$191.
Cattle futures, especially Feeder Cattle faded early pressure to close mainly higher Thursday with continued support from higher wholesale beef values.
Feeder Cattle futures closed an average of $1.54 higher (62¢ higher in spot Aug to $2.92 higher at the back).
Live Cattle futures closed an average of 60¢ higher (12¢ to $1.02 higher), except for an average of 44¢ lower in the front three contracts.
Choice boxed beef cutout value was 39¢ higher Thursday afternoon at $340.55/cwt. Select was $1.28 higher at $313.16.
Grain markets were mainly lower on Thursday with weather forecasts continuing to cast a shadow.
Corn futures closed 6¢ to 13¢ lower through Jly ’22 and then mostly unchanged to fractionally higher.
Soybean futures closed 9¢ to 13¢ lower through Jan ‘22 and then mostly 5¢ higher, except for fractionally lower to 4¢ lower in a few middle contracts.
Major U.S. financial indices fell on Thursday with uncertainties about the strength of the economy and anticipation over when the Federal Reserve may slow or stop support. Friday’s jobs report is expected to give a strong indication of where the economy stands.
The Dow Jones Industrial Average closed 23 points lower. The S&P 500 closed 15 points lower. The NASDAQ was down 142 points.
Agricultural producer sentiment declined significantly last month, according to the Purdue University/CME Group Ag Economy Barometer. Month to month, the index dropped 20 points to 158, the lowest level since September last year.
“The potential for changing tax rules and rising input costs appeared to be on producers minds this month and were the primary drivers for the Ag Barometer’s decline,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
More specifically, producers’ expectations for good versus bad times in U.S. agriculture shifted dramatically. In May, just 27% of respondents said they expect good times in U.S. agriculture during the next five years, the lowest reading in the survey’s history and down 12 points from a month earlier. One driver appears to be the dichotomy between expectations for the crops versus livestock sectors. More than half (54%) of respondents said they expect widespread good times for the crops sector in the next five years, but just one-fourth (26%) of producers said they expect the same for the livestock sector.
“The difference in expectations for these two principal sectors of the agricultural economy could help explain why producers appear to be very bullish about farmland values and cash rental rates while at the same time expressing less optimism about both current conditions and future expectations for the agricultural economy overall,” Mintert says.