Feeder Cattle futures rebounded from some of the steep, recent losses Wednesday, helped along by static to lower Corn futures prices and sharply higher outside markets. Feeder Cattle futures closed an average of $2.44 higher ($2.02 to $3.20 higher.
Live Cattle futures closed an average of 71¢ higher, except for an average of 45¢ lower in the front three contracts.
Corn futures closed mostly 8¢ to 16¢ lower.
Soybean futures closed 20¢ to 30¢ lower.
Negotiated cash fed cattle trade started the week $2 lower in the Southern Plains at $140/cwt. Trade was slow on light to moderate demand, according to the Agricultural Marketing Service.
Trade was limited on light demand in Nebraska with a few live trades at $140, but too few to trend. Live prices last week were $142-$144 and dressed prices were $227.
Trade was also limited on light demand in the western Corn Belt. Prices last week were $144 on a live basis and $227 in the beef.
Choice boxed beef cutout value was 96¢ lower Wednesday afternoon at $255.72/cwt. Select was 18¢ lower at $251.34.
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Major U.S. financial indices closed sharply higher Wednesday, basically erasing losses from the previous session.
Positive news included the labor front. Private-sector non-farm employment increased by 475,000 jobs from January to February according to the February ADP®National Employment ReportTM.
“Hiring remains robust but capped by reduced labor supply post-pandemic. Last month large companies showed they are well-poised to compete with higher wages and benefit offerings, and posted the strongest reading since the early days of the pandemic recovery,” says Nela Richardson, ADP chief economist, “Small companies lost ground as they continue to struggle to keep pace with the wages and benefits needed to attract a limited pool of qualified workers.”
The Down Jones Industrial Average closed 596 points higher. The S&P 500 closed 80 points higher. The NASDAQ was up 219 points.
Gains came despite another surge in crude oil prices. West Texas Intermediate Crude Oil futures (CME) closed $4.28 to $7.19 higher through the front six contracts.
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Farmland prices are rising sharply as a result of high yields and strong commodity prices, as well as other factors, according to R.D. Schrader, president of Schrader Real Estate and Auction Company.
“A lot of things are falling into place to create one of the most positive land markets in recent years,” Schrader says. “The high yields and strong commodity prices are a powerful combination we haven’t seen in several years. In addition, many investors see the U.S. farmland market as a safe haven.”
Speaking at the company’s State of the Farmer’s Economy Update, Schrader explained prices for high quality farmland have risen by up to 24% in some parts of the Midwest.
“We’re seeing factors we’ve never seen before, including the use of Midwest farmland for wind and solar leases, pipelines, carbon wells and others,” explains Steve Slonaker, a farm manager, appraiser and auction manager. “Since we have little or no history on which to base our assessments, this makes the picture more complicated for everyone buying, selling or leasing farmland.”