Cattle futures closed lower Wednesday with pressure including negative outside markets, oversold conditions and perhaps some month-end profit taking.
Heading into the close and before settlement, Live Cattle futures were an average of $1.65 lower. Feeder Cattle were an average of $3.15 lower.
Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there some early FOB live trades in Nebraska at $190/cwt.
Last week, FOB live prices were $187 in the Southern Plains, $192 in Nebraska and $190-$192 in the western Corn Belt.
Dressed delivered prices were $304 in Nebraska and $302-$304 in the western Corn Belt.
Choice boxed beef cutout value was $1.50 higher Wednesday afternoon at $313.62/cwt. Select was 95¢ lower at $302.48/cwt.
Grain futures closed lower Wednesday as it appeared traders took back some weather premium.
Heading into the close Tuesday, through Jly ‘25, Kansas City Wheat futures were 6¢ to 10¢ lower. Corn futures were 5¢ to 7¢ lower. Soybean futures were 5¢ to 18¢ lower.
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Major U.S. financial indices closed lower Wednesday. Pressure included concerns about a second day of increase in the benchmark 10-year Treasury yield.
The Dow Jones Industrial Average closed 411 points lower. The S&P 500 closed 39 points lower. The NASDAQ was down 99 points.
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Rural communities continue struggling for economic growth, according to Creighton University’s latest Rural Mainstreet Index (RMI). It sagged below growth neutral in May for the ninth consecutive month, declining 1.6 points from April to 44.2.
Higher interest rates, weaker agriculture commodity prices and higher grain storage costs contributed to the decline, according Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
The RMI is based on a survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
Among other measures, the region’s farmland price index slumped to 47.9 from April’s 56.5.
“For the first time in more than four years, Creighton’s survey is detecting weakening farmland price growth,” Goss says. “Only 4.2% of bankers reported that farmland prices expanded from previous levels.”
Similarly, the farm equipment sales index for May dropped to 34.0 from 47.7 in April.
“This is the 11th time in the past 12 months that the index has fallen below growth neutral,” Goss says. “Higher borrowing costs, tighter credit conditions and weaker grain prices are having a negative impact on the purchases of farm equipment.”
The latest survey also asked about banks’ interest rates on farm operating loans and farmland loans. On average, bankers reported an average interest rate of 8.6% on farm operating loans and 7.4% on farmland loans.