Cattle futures closed lower Monday after early strength as traders appear cautious about Friday’s next Cattle on Feed report, as well as lingering future demand concerns.
Feeder Cattle futures closed an average of $1.13 lower.
Live Cattle futures closed an average 39¢ lower, except for 7¢ higher in spot Oct.
Negotiated cash fed cattle trade was at a standstill through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1 higher in the Southern Plains at $182/cwt. and $2 higher in in the North at $185. Dressed delivered prices were $2-$4 higher in Nebraska at $292 and steady to $4 higher in the western Corn Belt at $290-$292.
The five-area direct weighted average fed steer price last week was $184.30/cwt., which was $1.58 higher than last week. The average fed steer price in the beef was $2.57 higher at $291.83.
Corn futures closed mostly 3¢ lower.
Soybean futures closed 3¢ to 6¢ higher.
KC HRW Wheat closed mostly fractionally lower to 1¢ lower.
Major U.S. financial indices gained Monday on positive quarterly earnings reports.
The Dow Jones Industrial Average closed 314 points higher. The S&P 500 closed 45 points higher. The NASDAQ was up 160 points.
West Texas Intermediate Crude Oil futures (CME) closed 82¢ to $1.09 lower through the front six contracts.
Global economic recovery from the pandemic and Russia’s war on Ukraine remains slow and uneven, according to the International Monetary Fund (IMF), in the recent World Economic Outlook (WEO).
“Risks to the outlook are more balanced than they were six months ago, on account of the resolution of U.S. debt ceiling tensions and Swiss and U.S. authorities having acted decisively to contain financial turbulence,” according to the WEO Executive Summary. “The likelihood of a hard landing has receded, but the balance of risks to global growth remains tilted to the downside.”
The IMF projects global economic growth to be 3.0% this year, down from 3.5% last year. Next year’s growth is projected to be 2.9%. IMF forecast U.S. GDP at 2.1% this year, the same as last year, and then 1.5% next year.
“Several forces are holding back the recovery,” according to the WEO. “Some reflect the long-term consequences of the pandemic, the war in Ukraine, and increasing geo-economic fragmentation. Others are more cyclical in nature, including the effects of monetary policy tightening necessary to reduce inflation, withdrawal of fiscal support amid high debt, and extreme weather events.”
Among key risks to the economy, IMF cites: a deepening real estate crisis in China; more volatile commodity markets tied to geo-political tensions and disruptions linked to climate change; uncomfortably high inflation.”