Cattle futures rallied higher Tuesday. Some of it could be traders sensing a bottom in the cash market, as well as potential optimism about the monthly Cattle on Feed report due out Friday.
Live Cattle futures closed an average of $1.32 higher through the front three contracts and then an average of 48¢ higher.
Feeder Cattle futures closed an average of $2.34 higher ($1.77 to $3.10 higher).
Wholesale beef values were lower to sharply lower on light to moderate demand and moderate to heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 85¢ lower Tuesday afternoon at $219.77/cwt. Select was $2.66 lower at $193.91.
Corn futures closed mostly 6¢ lower.
Soybean futures closed 5¢ to 6¢ lower through Aug ’20 and then mostly 1¢ to 2¢ lower.
Major U.S. financial indices edged higher Tuesday, helped by lower oil prices, as investors await the latest interest rate decision from the Fed’s meeting, which concludes Wednesday.
Oil prices declined after the previous day’s spike, with reports that Saudi Arabian production will recover quickly from the weekend attacks on its oil fields.
Through the front six contracts, crude oil futures (WTI-CME) were down an average of 3.24.
The Dow Jones Industrial Average closed 33 points higher. The S&P 500 closed 7 points higher. The NASDAQ was up 32 points.
“If we want to knock down barriers we need to make all players feel valued,” says Marcelo Gonzalez, Paraguayan Vice Minister of Livestock. “Think ahead and have a plan that thinks beyond 10 or 20 years to be sustainable. Sometimes farmers are already doing what we want them to do, but consumers don’t know and government doesn’t know.”
Gonzalez spoke at last week’s 9th annual meeting of the Global Agenda on Sustainable Livestock (GASL), at Kansas State University.
Besides being the first time the GASL meeting took place in the United States, it was also the first time trade issues were part of the formal agenda.
“Sustainability should go hand in hand with negotiation,” Gonzalez explained, adding that transparency and consumer education is also important. “Some car companies have said they won’t use leather because they don’t want to support an industry that’s not sustainable. They don’t realize they’re hurting farmers who are trying to produce in more sustainable ways.”
Trade is essential to sustainable outcomes, according to Jason Hafemeister, U.S. Department of Agriculture Foreign Agricultural Service.
“We have to produce more with less,” Hafemeister said, but warned that if productivity is driven by something other than consumer preferences, it can be captured by special interests.