Cattle futures took another step higher Wednesday, helped along by more positive outside markets.
Feeder Cattle futures closed an average of $1.48 higher, except for 27¢ lower in expiring spot Mar.
Live Cattle futures closed an average of 68¢ higher (27¢ to 95¢ higher).
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill in all regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were $163/cwt. in the Southern Plains, $164-$165 in Nebraska and $164-$166 in the western Corn Belt. Dressed prices were $265.
Choice boxed beef cutout value was 34¢ lower Wednesday afternoon at $280.29/cwt. Select was $1.46 lower at $268.90/cwt.
Corn futures closed mostly 1¢ lower, except for 3¢ higher and 1¢ higher in the front two contracts.
KC HRW Wheat closed 2¢ to 15¢ lower.
Soybean futures closed 4¢ to 9¢ higher in the front three contracts, and then mostly 2¢ to 5¢ lower.
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Major U.S. financial indices closed higher Wednesday, supported by stronger tech stocks and more confidence in the banking sector.
The Dow Jones Industrial Average closed 323 points higher. The S&P 500 closed 56 points higher. The NASDAQ was up 210 points.
West Texas Intermediate Crude Oil futures (CME) closed 22¢ to 29¢ lower through the front six contracts.
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Rural economic growth declined last month, according to the Creighton University Rural Mainstreet Index (RMI). The March index declined to 45.6 from 50.1 in February. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. It was above growth neutral the previous three months.
“The Rural Mainstreet economy continues to experience slow, to no, to negative economic growth. Less than 1% of bankers reported improving economic conditions for the month with 92% indicating no change in economic conditions from February’s slow growth,” according to Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The RMI is based on a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. It represents approximately 200 rural communities — average population of 1,300.
“Over the past 12 months, the regional confidence index has fallen to levels indicating a very negative outlook,” Goss says. The slowing economy, higher borrowing costs and labor shortages constrained the business confidence index to a weak 39.1 from 44.4 in February.
Among survey highlights:
- After advancing by more than 9% for 2022, bank CEOs expect farmland prices to expand by only 1% over the next 12 months.
- Only 13.6% of bankers tightened credit standards for farm loans this year.
- Bank savings deposits rose to a record level.