Negotiated cash fed cattle trade was active on very good demand in Nebraska Wednesday with live prices steady at $144-$145/cwt. and dressed prices mainly steady to $4 lower at $228.
Trade was slow on moderate demand in the western Corn Belt, where there were a few live sales at $144-$145 and a few in the beef at $228, but too few to trend, according to the Agricultural Marketing Service. Prices there last week were $145-$148 and $227-$234, respectively.
Trade in the Southern Plains ranged from limited to mostly inactive on light demand. Live prices there the previous day were steady at $143.
Choice boxed beef cutout value was 88¢ lower Wednesday afternoon at $247.55/cwt. Select was $2 lower at $219.21.
Cattle futures weakened again Wednesday with hangover pessimism from recent sessions.
Feeder Cattle futures closed an average of 72¢ lower (32¢ to $1.12 lower).
Live Cattle futures closed an average of 50¢ lower except for 15¢ higher in the back contract.
Corn and Soybean futures crawled higher, perhaps on increasing Russian rhetoric and positioning ahead of Friday’s Grain Stocks report.
Corn futures closed mostly 3¢ higher.
Soybean futures closed 5¢ to 9¢ higher.
Major U.S. financial indices rallied Wednesday, apparently based mainly on oversold conditions.
The Dow Jones Industrial Average closed 549 points higher. The S&P 500 closed 72 points higher. The NASDAQ was up 222 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.82 to $3.65 higher through the front six contracts.
Economic conditions continue to deteriorate in the 10-state region dependent on agriculture and/or energy, monitored by the Rural Mainstreet Index (RMI).
“The Rural Mainstreet economy is now experiencing a downturn in economic activity. Supply chain disruptions and inflationary pressures from higher farm input costs continue to constrain growth,” says Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. “Farmers and bankers are bracing for escalating interest rates, higher farm input costs, and drought.”
The Creighton University Rural Mainstreet Index (RMI) fell for the fifth straight month, sinking below growth neutral for a fourth consecutive month, according to the monthly survey of bank CEOs.
Four of 10 bankers indicated that high and escalating farm input costs were the greatest economic challenge to their bank and area over the next 12 months.
More than one of five, or 21.4%, of bank CEOs reported drought impacts were the greatest economic challenge going forward.