Negotiated cash fed cattle trade was slow on light demand through Thursday afternoon, according to the Agricultural Marketing Service.
Live prices were $2 higher in the Southern Plains at $150/cwt.
Although too few to trend, there were some early live sales at $152 in Nebraska and $151-$152 in the western Corn Belt; early dressed sales at $240 in Nebraska and $236 in the western Corn Belt.
Last week, live sales were $150-$152 in Nebraska and $150 in the western Corn Belt. Dressed prices were $236 in Nebraska and $232-236 in the western Corn Belt.
Choice Boxed beef cutout value was $1.63 higher Thursday afternoon at $262.49/cwt. Select was $3.31 higher at $231.91/cwt.
Cattle futures softened Thursday despite higher wholesale beef values and early stronger cash fed cattle prices.
Feeder Cattle futures closed an average of 50¢ lower (5¢ to 17¢ lower).
Live Cattle futures closed an average of 23¢ lower.
Corn futures closed mostly 1¢ to 2¢ lower.
Soybean futures closed mostly 1¢ to 2¢ lower, except for fractionally higher in the front contracts.
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Major U.S. financial indices closed mixed again Thursday, with tech stocks pressuring the NADAQ and S&P 500. On the other hand, higher domestic economic growth than expected in the third quarter buoyed the Dow Jones Industrial Average.
Third-quarter GDP grew at an annual rate of 2.6%, according to the U.S. Bureau of Economic Analysis. Those analysts say, “The increase in the third quarter primarily reflected increases in exports and consumer spending that were partly offset by a decrease in housing investment.”
The Dow Jones Industrial Average closed 194 points higher. The S&P 500 closed 23 points lower. The NASDAQ was down 178 points.
West Texas Intermediate Crude Oil futures (CME) closed 86¢ to $1.17 higher through the front six contracts.
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Although domestic economic growth was stronger than expected in the third quarter, the global economic outlook continues to weaken, according to the latest quarterly World Economic Outlook (WEO) from the International Monetary Fund (IMF).
“More than a third of the global economy will contract this year or next, while the three largest economies — the United States, the European Union and China — will continue to stall,” say WEO authors. “In short, the worst is yet to come, and for many people 2023 will feel like a recession.”
High inflation and central banks’ monetary tightening to contain it remain a primary headwind. COVID and the Russian war on Ukraine are others.
The IMF shaved 0.2% from its outlook for 2023 global economic growth, compared to the July projection. IMF forecasts global GDP to be 3.2% this year and to be 2.7% next year.
“This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic and reflects significant slowdowns for the largest economies: a U.S. GDP contraction in the first half of 2022, a euro area contraction in the second half of 2022, and prolonged COVID-19 outbreaks and lockdowns in China with a growing property sector crisis,” say IMF analysts.
Projections peg U.S. economic growth at 1.6% this year and 1.0% next year.
IMF analysts say risks to their latest outlook remain unusually large and to the downside.