Summary for Friday, January 20th:
Slaughter Cattle: Friday negotiated cash trade was mostly inactive on light demand in all feeding regions. The latest established market was on Thursday with live sales in the Texas Panhandle from 122.00-123.00. In Kansas and Colorado live sales sold at 122.00. In Nebraska, live sales sold from 121.00-122.50, bulk at 122.00 with dressed sales at 195.00. In the Western Cornbelt on Thursday, live sales sold 120.00-122.00 with dressed at 195.00.
Negotiated Sales: Confirmed: 2,336 Week Ago: 3,594 Year Ago: 858
Prices - Slaughter Steers & Heifers:
Net - Dressed
Alberta Beef Producers Daily Report: Alberta direct cattle sales so far this week have seen light trade develop with dressed sales marked at 268.00 delivered, initial sales are steady to 2.00 lower than the previous week. Live sales have been reported in the low 160's and are fully steady with last week's weighted average price. Buyers were indicating cattle that they bought this week would be lifted in 1-3 weeks.
under Federal Inspection:
Boxed Beef: Boxed beef cutout values lower on light to moderate demand and light offerings. Select and Choice rib, round, and chuck cuts steady to weak. Choice loin cuts weak while Select firm. Beef trimmings unevenly steady on light demand and offerings.
Cattle Futures Summary: Live cattle futures closed moderately lower in the nearby contracts and mixed in the deferreds today. The front contracts closed well off their lows posted earlier today. The February contract closed $1.72 1/2 higher on the week. Feeder cattle futures rallied off earlier lows and closed more than $1.00 higher in the front two contracts. Weakness in wholesale prices raises the risk a near-term cash high has been posted, as retail buying has eased as it normally does at midmonth.
February Live Cattle Futures: 120.25...-0.77
April Live Cattle Futures: 119.87...-0.90
June Live Cattle Futures: 108.70...-0.47
January Feeder Cattle Futures: 133.10...+1.15
March Feeder Cattle Futures: 131.27...+1.12
April Feeder Cattle Futures: 130.10...+0.63
Feeder Cattle Index: 133.28...+1.03
Hog Futures Summary: February through August lean hog futures ended the day 12 1/2 to 82 1/2 cents lower, with far-deferreds firmer amid spreading. For the week, February hogs remained within the recent consolidation range and ended 47 1/2 cents below last week's closing level. February hogs ended the week at around a $1 discount to the cash index. If packers remain willing to offer steady to higher bids early next week, it should give nearby futures a boost.
February Lean Hog Futures: 65.30...-0.12
National Grain Market Summary: Compared to last week, grain and soybean were higher with wheat trading lower. Soybeans were the leader of the board finding support from heavy rain and flooding in Argentina. Additional sources of support came from a weaker U.S. dollar and stronger outside markets. However, concerns over future global trade added some market pressure. The NOPA crush report came out this week listing soybean crush for the month of December at 160.2 million bushels. Wheat was mostly 2-29 cents lower. Corn was 8-13 cents higher. Sorghum was 14 cents higher. Soybeans were 23-28 cents higher.
Kansas City Corn: 3.51...+0.03
Kansas City Soybeans: 10.15...-0.03
Kansas City Wheat: 3.78...+0.01
Corn Futures Summary: Corn futures posted gains of 2 1/4 to 3 1/2 cents through the December contract, which was on the daily and weekly highs. For the week, March corn futures pushed above last fall's high and ended 11 1/4 cents higher. Bulls carry momentum into next week after the breakout above the October highs. That could encourage traders to cover more short positions and potentially add long positions.
March Corn Futures: 3.6975...+0.0350
Soybean Futures Summary: Soybean futures ended the day marginally to 2 3/4 cents lower today on profit-taking but avoided doing any technical chart damage. March soybeans posted a weekly gain of 21 1/2 cents and November soybeans gained 10 3/4 cents. Late-week profit-taking signals the potential for more of the same heading into next week, but a lot will depend on traders' focus.
March Soybean Futures: 10.6750...-0.0275
Wheat Futures Summary: Winter wheat futures saw a boost from the corn market today, with SRW up 2 1/4 to 4 3/4 cents and HRW steady to 3/4 cent higher. Spring wheat ended the day mostly around 2 to 3 cents lower, with the front-month down 8 cents. For the week, March SRW ended with gains of 2 1/4 cent, March HRW posted a week loss of 5 1/4 cent and March HRS ended with a weekly loss of 14 1/2 cents.
March Wheat Futures: 4.2825...+0.0475
Nearby Crude Oil Futures Contract: 52.42...+1.05
Dow Jones Industrial Average: 19,827.18...+94.78
U.S. Dollar Index: 100.87...-0.26
Feeder & Stocker Cattle Summary
Compared to last week, steer and heifer calves suitable for summer turnout sold steady to 5.00 higher in the Plains, while those were steady to 3.00 lower in the Southeast. Steers and heifers over 600 lbs were steady to 3.00 higher. Demand was reported to be good to very good in many locations nationwide this week in spite of trying weather and conditions through the center part of the country. Cancellations of regular scheduled sales or severely curtailed receipts were common place in early week action in the Southern and Northern Plains if ice had accumulated any at all.
Order buyers got back in the saddle mid to late week and paid up with higher prices in a vast majority of auctions. On Wednesday in Bassett, NE a load of 810 lb steers with all the bells and whistles sold for 141.25 while a load of 630 lb replacement quality heifers rung the bell at 150.00. Optimism was prevalent this week again as fed cattle continue to surge in the post holiday trading weeks. This week, fed cattle rose another 3.00 to 4.00 as live trading transpired at 122.00 to 123.00 and dressed sales were 5.00 higher at 195.00. A pattern has come to light the past couple weeks that after fed cattle trade occurs, there is a sell off on the CME Board. Market participants are protecting their positions to take advantage of this recent run-up in the market since Thanksgiving. Along with the handsome prices paid to producers, packers took on some inventory again as over 100K was sold in the 5 Area again this week. Since the week before Christmas, live sales have gained 7.00 and dressed sales have increased 15.00.
During that same time frame, Choice Boxed beef has risen from around 197.00 to over 203.00 between the Holidays to close at 190.42 today. January to December 2016 commercial red meat production was 50.4 billion pounds, up 4 percent from 2015. Accumulated beef production was up 6 percent from last year and pork was up 2 percent from last year. For CY2016, average steer weight was reported at 891 lbs, down 1 lb from a year ago; while the average yearly heifer weight is reported at 822 lbs, up 4 pounds from the previous year. This would suggest that feedlots are keeping their marketings current at the present time and if packers continue to put more dollars in the pocket of the producers, they will continue to push cattle through the pipeline. After Monday's very short cattle harvest of 69,000 head, packers still harvested 569K for the week. Had it not been for ice in the Plains on Sunday and Monday, there would be no doubt that harvest would've been over 600K this week. Auction volume this week included 54 percent weighing over 600 lbs and 41 percent heifers.
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Although all information
is from sources believed to be accurate & timely,