Feeder Cattle futures gained Wednesday on declining Corn futures. They closed an average of $1.18 higher (77¢ to $2.00 higher).
Corn and Wheat futures reversed direction as Russia reversed course and claimed it is rejoining the initiative that enabled Ukraine exports from the Black Sea.
Corn futures closed 8¢ to 10¢ lower through Jly ‘23 and then mostly 3¢ to 5¢ lower. Kansas City Wheat futures closed 34¢ to 49¢ lower through May ‘24. Soybean futures closed mostly 8¢ to 9¢ higher.
Live Cattle futures tread water, awaiting weekly cash direction. They closed narrowly mixed from an average of 29¢ lower to an average of 21¢ higher.
Negotiated cash fed cattle trade was limited on light demand through Wednesday afternoon, with too few transactions to trend in any region, according to the Agricultural Marketing Service. There were a few early live sales in the Texas Panhandle at $149/cwt. and a few in the western Corn Belt at $154. There were early dressed trades in Nebraska at $243.
Last week, live prices were $150/cwt. in the Southern Plains and $152-$153 in Nebraska and the western Corn Belt. Dressed prices were $240.
Choice Boxed beef cutout value was 84¢ higher Wednesday afternoon at $263.47/cwt. Select was 43¢ higher at $233.16/cwt.
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Major U.S. financial indices closed lower after the Fed raised interest rates by another 0.75 points and signaled more hikes to come.
“Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low,” according to a Fed statement. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”
The Dow Jones Industrial Average closed 505 points lower. The S&P 500 closed 97 points lower. The NASDAQ was down 366 points.
West Texas Intermediate Crude Oil futures (CME) closed $1.63 to $1.77 higher through the front six contracts.
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USDA announced Wednesday that the Biden Administration is investing $73 million in 21 grant projects through the first round of the Meat and Poultry Processing Expansion Program (MPPEP), which aims to support small to mid-size packing companies and expand the nation’s meat and poultry processing capacity.
For instance, Greater Omaha Packing Company in Nebraska received a $20 million MPPEP grant that the company will use as part of a planned $100 million investment to upgrade and automate freezers, expand its wastewater system for increased capacity, remodel key areas for value-added further processing, and increase its carcass holding coolers. In total, the Greater Omaha team estimates the capacity expansions will help the company process an additional 700 head of cattle per day.
“This significant investment will allow the company to remain competitive in the marketplace and continue to support our small family feeder operators while providing incremental value back to the producers,” says Henry Davis, CEO of Greater Omaha. “We believe the production expansions will keep us at the forefront of an ever-changing industry.”