Cattle Current Daily—Oct. 6, 2021

Cattle Current Daily—Oct. 6, 2021

Negotiated cash fed cattle trade was mostly inactive with light demand in all trading regions through Tuesday afternoon, according to the Agricultural Marketing Service. There were not enough sales for a market trend.

Live prices last week were at $124/cwt. in the Texas Panhandle, at $122-$124 in Kansas, at $122 in Nebraska and at $122-$123 in the western Corn Belt. Dressed prices were $196 in Nebraska and $192-$196 in the western Corn Belt. 

Cattle futures received follow-through support Tuesday amid continued oversold conditions and outside support.

Feeder Cattle futures closed an average of $1.37 higher (60¢ higher in Aug ’22 up to $1.85 in nearby Nov.

Live Cattle futures closed an average of 66¢ higher (20¢ at the front of the board to 95¢ at the back) except for nearby Dec, down 20¢.

Choice boxed beef cutout value was $1.47 lower Tuesday afternoon at $287.71/cwt. Select was $2.62 higher at $267.78/cwt.

Corn futures closed 2¢ to 4¢ lower.

Soybean futures closed 7¢ to 15¢ higher.

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Major U.S. financial indices closed higher on Tuesday amid continued volatility in the markets. Part of that uncertainty stems from mixed news about the economy and its recovery. On the positive side, a report from the Institute for Supply Management Tuesday showed service provides expanded in September more quickly than anticipated. Despite continued problems with inventories and labor, 17 of 18 service industries grew last month, with retail, entertainment and management/support experiencing the biggest growth.

The Dow Jones Industrial Average closed 312 points higher. The S&P 500 closed 45 points higher. The NASDAQ closed 178 points higher.

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The Purdue University/CME Group Ag Economy Barometer declined in September, down 14 points to a reading of 124. That’s the weakest agricultural producer sentiment reading since July 2020 when the index stood at 118. The Index of Current Conditions declined 12 points to a reading of 140 and the Index of Future Expectations fell 16 points to a reading of 116.

In September, fewer respondents said they expected their ranch or farm financial performance to match last year’s, while the percentages of producers expecting both worse and better financial performance rose.

“Although the combined responses left the Farm Financial Performance Index unchanged from a month earlier, the increasing divergence in expectations among respondents from August to September could reflect differences in how individual farms managed risk in a period of rapidly fluctuating commodity prices,” says James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

Producer concerns about rising input costs rose sharply this month with over one-third of respondents saying they expect input prices to rise by more than 12% in the coming year, which is six times the average farm input inflation rate of the last decade. Inflation expectations were higher this month across the board with the percentage of respondents expecting input inflation to rise above 12% doubling since July with an increase to 34%, up from 21% last month.

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 Sept. 27-29, 2021.

2021-10-05T20:25:33-06:00

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