Recently surging wholesale beef values and more positive outside market helped Cattle futures rally higher Wednesday.
Toward the close, Live Cattle futures were an average of $4.11 higher. Feeder Cattle futures were an average of $6.96 higher.
Negotiated cash fed cattle trade was mostly inactive on light demand in all major cattle feeding regions through Wednesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $244/cwt. in the Southern Plains, $239-$243 in Nebraska and mainly $243 in the western Corn Belt. Dressed delivered prices were mainly $383 in Nebraska and $382-$383 on a light test in the western Corn Belt.
Choice boxed beef cutout value was 52¢ higher Wednesday afternoon at $388.57/cwt. Select was $1.77 higher at $380.35.
Grain and Soybean futures trended lower Wednesday, as traders appeared to reduce some risk premium based on the U.S.-Israel attack on Iran, as well as domestic weather.
Toward the close, and through near Sep contracts, Kansas City HRW Wheat futures were 7¢ to 13¢ lower. Corn futures were 2¢ lower. Soybean futures were 1¢ to 4¢ lower.
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Major U.S. financial indices gained Wednesday, following the early-week selloff tied to the U.S.-Israel attack on Iran, led by tech stocks and supported by decelerating Crude Oil futures and a more bullish labor reading than expected.
Private sector employment increased by 63,000 jobs in February and pay was up 4.5% year-over-year according to the February ADP National Employment Report®.
“We’ve seen an increase in hiring and pay gains remain solid, especially for job-stayers,” says Dr. Nela Richardson, ADP chief economist. “But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs. In fact, the pay premium for switching employers hit a record low in February.”
The Dow Jones Industrial Average closed 238 points higher. The S&P 500 closed 52 points higher. The NASDAQ was up 290 points.
Through mid-afternoon, West Texas Intermediate Crude Oil futures (CME) were 50¢ to $1.12 higher through the front six contracts.