Negotiated cash fed cattle trade opened the week in the Southern Plains on Tuesday on moderate demand and trade, with live prices steady to $1 higher than last week at $127/cwt. in the Texas Panhandle and $126-$127 in Kansas.
Although supplies continue to be snugger in the North, according to various reports, the early trade on the part of packers speaks to their need for inventory. You couldn’t tell it by soggy Cattle futures, though.
Live Cattle futures closed little changed on Tuesday, while Feeder Cattle took another step down, though stronger early pressure softened by the end of the session.
Except for 35¢ higher in spot Apr, Live Cattle futures closed an average of 23¢ lower.
Except for unchanged at the very back, Feeder Cattle futures closed an average of 80¢ lower.
Choice boxed beef cutout value was 17¢ lower Tuesday afternoon at $223.73/cwt. Select was 74¢ lower at $216.75.
******************************
Major U.S. financial indices closed lower on Tuesday. Among the pressure was a sharp decline in Qualcomm stock after President Trump kyboshed the proposed multi-billion dollar hostile buyout of that U.S. chip maker by Singapore-based chip maker, Broadcom, citing national security risk. The notion is that it could further strain ties with China, following the tariffs on imported steel and aluminum.
The Dow Jones Industrial Average closed 171 points lower. The S&P 500 closed 17 points lower. The NASDAQ closed 77 points lower.
******************************
“Food and feed grains prices are expected to have bottomed out by marketing year 2017-18. Marketing year 2018-19 marks the beginning of gradual price increases that are expected to continue through the decade,” according to the recent USDA Agricultural Projections to 2027. “Despite price growth, prices are projected to remain lower than those seen over the past decade, leading to shifts in relative returns and accompanying changes in crop plantings. Shifts in acreage are expected—most notably from corn and, in the short run, wheat towards soybeans and sorghum, reflecting strong international demand for these commodities. These projections are the first in history where soybean acreage is expected to eclipse corn acreage.”