Follow-through support lifted Cattle futures for a second consecutive day, helped along by another down day for Corn.
Feeder Cattle futures closed an average of $1.13 higher, (5¢ higher toward the back to $2.20 higher toward the front), except for unchanged in the back two contracts.
Live Cattle futures closed an average of 61¢ higher, from 12¢ higher at the front to $1.00 higher at the back.
Negotiated cash fed cattle trade ranged from limited on light demand to at a standstill through Tuesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, live prices were steady in the Southern Plains at $140/cwt, $2 higher ion Colorado at $145-$147, steady to $2 higher in Nebraska at $146 and steady to $1 higher in the western Corn Belt at $145-$147. Dressed prices were $2 higher at $232.
Choice Boxed beef cutout value was $3.00 lower Tuesday afternoon at $259.55/cwt. Select was 89¢ lower at $247.34.
As mentioned, Corn and Soybean futures continued to soften Tuesday despite slow planting progress.
Corn futures closed mostly 6¢ to 7¢ lower, while Soybean futures closed 10¢ to 15¢ lower through Mar ‘23 and then mostly 2¢ to 4¢ lower.
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Major U.S. financial indices eased higher Tuesday, as investors await the Fed’s next interest rate decision Wednesday.
The Dow Jones Industrial Average closed 67 points higher. The S&P 500 closed 20 points higher. The NASDAQ was up 27 points.
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Agricultural producer sentiment increased in April, but remains significantly lower year over year, according to the Purdue University/CME Group Ag Economy Barometer. It rose 8 points in April to 121, which was 32% less than last year.
The Index of Current Conditions improved 7 points to 120. The Index of Future Expectations improved 9 points to 122.
“Rising prices for major commodities, especially corn and soybeans, appear to be leading the change in producers’ improved financial outlook,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “However, it’s hard to overstate the magnitude of the cost increases producers say they are facing.”
Producers continue to say higher input costs are their top concern. In April, 42% of producers said higher input costs were their biggest concern, which was more than twice as many who chose government policies (21%) or lower output prices (19%). In April, 60% of survey respondents said they expect input prices to rise by 30% over the next 12 months.
When asked specifically for their expectations for 2023 crop input prices compared to prices paid for 2022 crop inputs, 36% of respondents said they expect prices to rise 10% or more, while 21% of crop producers said input price increases of 20% or more are likely. The war in Ukraine added a new level of uncertainty for producers. Sixty percent of survey respondents said the biggest impact of the war on U.S. agriculture will be on input prices.
The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between April 18-22.