Cattle futures faded early pressure to close mainly narrowly mixed on Tuesday, supported by the continued surge in beef cutout values and the outlook for steady to higher cash fed cattle prices this week.
Except for 62¢ lower in spot Dec and 52¢ higher at the back of the board, Live Cattle futures closed marginally mixed (10¢ lower to 25¢ higher).
Other than $1.22 lower in spot Nov and 10¢ higher at the back of the board, Feeder Cattle futures closed an average of 11¢ lower.
Wholesale beef values were higher on Choice and weak on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.24 higher Tuesday afternoon at $236.05/cwt. Select was 56¢ lower at $209.82.
Corn futures closed mostly 1¢ lower.
Soybean futures closed 3¢ to 4¢ lower through Jan. ’21 and then mostly 1¢ lower.
Major U.S. financial indices closed narrowly mixed Tuesday, amid continued strong quarterly corporate earnings reports.
The Dow Jones Industrial Average closed 30 points higher. The S&P 500 closed 3 points lower. The NASDAQ was up 1 point.
Agricultural producer sentiment rose in October, according to the Purdue University/CME Group Ag Economy Barometer. It increased 15 points from September to a reading of 136. Sub-indices also increased, with an increase of 15 points in both the Index of Current Conditions (155) and the Index of Future Expectations (146).
The barometer is based on a mid-month survey of 400 U.S. crop and livestock producers.
“Almost across the board, farmers were more optimistic about the agricultural economy in October,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “While the level of optimism among farmers is higher than earlier this year, the survey uncovered additional uncertainty related to trade agreements that are still being negotiated.”
For instance, 96% of producers indicated the U.S.-Mexico-Canada Trade Agreement—waiting for approval by Congress—was either important or very important. However, only 55% expect it to be approved by Congress soon. At the same time, 97% of producers felt the recently announced trade deal with Japan was also important or very important to U.S. agriculture.
As for the ongoing trade war between the U.S. and China, 51% of respondents believed an imminent resolution was unlikely. But, that was 8% fewer than in September and 20% less than when the same question was posed in August. At the same time, 75% in the October survey said they expect the final outcome will ultimately prove beneficial to U.S. agriculture. October was the fourth consecutive month that more than 70% expected a beneficial outcome to the trade dispute.