Negotiated cash fed cattle trade ranged from mostly inactive on light demand to a standstill through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $183/cwt. in the Southern Plains, $183-$184.50 in Nebraska and $183-$184 in the western Corn Belt. Dressed delivered prices were $290.
Cattle futures weakened Wednesday, as traders appeared to be waiting for cash direction.
Live Cattle futures closed an average of 46¢ lower (22¢ to $1.07 lower).
Feeder Cattle futures closed an average of 91¢ lower (70¢ to $1.30 lower).
Choice boxed beef cutout value was 12¢ higher Wednesday afternoon at $304.91/cwt. Select was 22¢ higher at $295.09/cwt.
Grain and Soybean futures were mixed Wednesday. Keep in mind the monthly World Agricultural Supply and Demand Estimates are scheduled for release this Friday.
Corn futures closed fractionally higher to 2¢ higher.
KC HRW Wheat futures closed 10¢ to 15¢ lower though Dec ’24 and then 6¢ to 7¢ lower, struggling for demand.
Soybean futures closed mostly 1¢ to 2¢ lower.
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Major U.S. financial indices edged higher Wednesday, helped by inflation comments from Federal Reserve Chair, Jerome Powell.
In his Semiannual Monetary Policy Report to the Congress, Powell explained, “We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. But the economic outlook is uncertain, and ongoing progress toward our 2% inflation objective is not assured.”
The Dow Jones Industrial Average closed 75 points higher. The S&P 500 closed 26 points higher. The NASDAQ was up 91 points.
West Texas Intermediate Crude Oil futures (CME) closed 70¢ to $1.00 higher through the front six contracts.
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U.S. agricultural producer sentiment rose in February despite producers’ ongoing concerns about their operations’ financial performance in the year ahead, according to the latest Purdue University/CME Group Ag Economy Barometer.
The February barometer reading of 111 was 5 points higher month to month, buoyed by a 7-point increase 1n the Futures Expectations index. The Current Conditions Index was unchanged.
“Weak crop prices continue to weigh heavily on financial expectations, with mid-February Eastern Corn Belt cash prices for corn and soybeans declining by 7% and 8%, respectively, compared to two months earlier,” explains James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
More specifically, 34% of respondents cited higher input costs as their primary concern for their operation this year, followed by 28% who said it was lower crop and livestock prices.
Each February, the barometer survey asks producers about growth plans for their operation in the next five years. This year, 40% of respondents expressed no plans for growth, with 14% saying they plan to exit or retire. Just over 3 out of 10 respondents anticipate their farm’s annual growth rate to exceed 5%. Responses to this question, which have been consistent in recent years, point to further consolidation among farm operations.
The latest Ag Economy Barometer survey was conducted from February 12-16.