Daily Market Summary for February 15th
Updated Monday thru Friday around 4:00 PM CT
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Daily Market Summary for February 15th
Slaughter Cattle:
As of 3:00 PM Thursday, negotiated cash trading in the Southern Plains was at a standstill. In Nebraska and the Western Cornbelt negotiated cash trading was limited on light demand. In the Western Cornbelt a few live cash trades moved from 124.00-127. However, not enough trades for a market trend. For the prior week in the Southern Plains live cash trades moved at 125.00. Last week in Nebraska live cash trades moved mostly from 125.00-125.50 and dressed cash trades moved at 200.00. For the prior week in the Western Cornbelt live cash trades ranged from 124.50-126.00 and dressed cash trades moved at 200.00.
Negotiated Sales:
Confirmed: 5,379 Week Ago: 3,178 Year Ago: 1,189
Week to Date: 12,849 Week Ago to Date: 6,507 Year Ago to Date: 4,265
Formula Net - Dressed Steers & Heifers
Head count priced today: 43,000
Weighted avg weight: 866
Weighted avg net price: 200.01
Alberta Beef Producers Daily Report:
Alberta direct cattle sales so far this week have seen light trade develop with live sales ranging from 147.00-147.50, sales are 3.00-4.00 lower than last weeks weighted average price. Dressed bids have been reported anywhere from 243.00-252.00 delivered. Bids are 2.00-7.00 lower than the previous week. Cash to futures basis levels continue to weaken, basis levels are at the weakest point since February 2016. US packers are indicating they have enough Canadian fed cattle contracted and buying interest was next to non-existent on the cash market.
Livestock Slaughter under Federal Inspection:
Cattle Calves Hogs Sheep
Friday (est 111,000 2,000 465,000 8,000
Week ago (est) 115,000 2,000 442,000 8,000
Year ago (act) 114,000 3,000 442,000 7,000
Week to date (est) 570,000 12,000 2,296,000 38,000
Last Week (est) 585,000 10,000 2,299,000 38,000
Last Year (act) 579,000 10,000 2,299,000 36,000
Saturday (est 26,000 0 218,000 1,000
Week ago (est) 35,000 0 217,000 1,000
Year ago (act) 23,000 0 87,000 0
Week to date (est) 596,000 12,000 2,514,000 39,000
Last Week (est) 620,000 10,000 2,516,000 39,000
Last Year* (act) 589,000 10,000 2,389,000 36,000
2019 YTD 3,541,000 65,000 14,430,000 216,000
2018 *YTD 4,155,000 73,000 16,468,000 247,000
Percent change -14.8% -11.1% -12.4% -12.4%
Previous Day Estimated -- Steers & Heifers -- Cows & Bulls
Thursday 93,000 24,000
Boxed Beef:
Boxed beef cutout values firm to higher on moderate to fairly good demand and moderate offerings. Select and Choice rib, chuck, round, and loin cuts steady to firm. Beef trimmings mostly slightly higher on moderate to good demand and moderate offerings.
Cutout Values... Choice Select
Current Cutout Values: 216.85 210.99
Change from prior day: +0.78 +0.58
Choice/Select spread: 5.86
Total Load Count (Cuts, Trimmings, Grinds): 102
Cutter Cow Cutout: 164.68… +0.76
CME Feeder Cattle Index: 141.31… -0.19
Futures
Live Cattle:
February: 126.62… +0.50
April: 127.17… -0.20
June: 118.07… -0.20
Feeder Cattle:
March: 142.60… -1.47
April: 145.22… -1.28
May: 146.57… -1.10
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April Hogs: 59.52… +0.82
March Crude Oil: 55.59... +1.18
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March Corn: 3.7475… Unchanged
March Soybeans: 9.0750… +0.0400
March Wheat: 5.0425… -0.0275
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Weekly National Grain Market Review:
Compared to last week, cash bids for wheat were higher, corn, soybeans and sorghum were mixed. Export inspections for week ending February 7th totaled 29.2 million bushels of corn, 39 million bushels of soybeans and 20.6 million bushels of wheat. All export inspection figures were lower when compared to the week prior. Ethanol production for the week ending February 8th saw a 62,000 barrel per day increase compared to the week prior, totaling 1.029 million barrels per day. USDA said export sales figures for week ending January 3rd totaled 18.1 million bushels of corn, 22.5 million bushels of soybeans, and 4.8 million bushels of wheat. Wheat was 6 to 15 cents lower. Corn was 2 cents lower to 5 cents higher. Sorghum was 6 cents lower to 24 cents higher. Soybeans were 9 cents lower to 3 cents higher.
Grain Cash Bids:
Kansas City Corn: 3.72… Unchanged
Kansas City Soybeans: 8.65… +0.05
Kansas City Wheat: 4.79… -0.03
Financial Markets:
Dow Jones Industrial Average: 25,883.45… +444.06
S & P 500: 2,775.59… +29.86
NASDAQ: 7,472.41… +45.46
U.S. Dollar Index: 96.87… -0.15
National Feeder & Stocker Cattle Summary
RECEIPTS: Auctions Direct Video/Internet Total
This Week 223,800 78,200 3,600 305,600
Last Week 259,700 56,100 22,300 338,100
Last Year 238,000 62,900 2,200 303,100
Compared to last week, steers and heifers sold 2.00 lower to 2.00 higher in the North and South Central areas while the Southeast steers and heifers were 2.00 to 5.00 higher. Grazing calves in all areas were in demand this week as procurement was essential to ranchers this week. Ranchers are gearing up for grazing season as many areas have ample moisture for this time of year. When looking at the drought monitor this week, most of the severely drought stricken areas from last year have all but vanished in the breadbasket of the country. Areas in TX, NM, and CO are still showing drought effects. Order buyers were out in full force this week as fewer receipts were at sales across the country and feedyards were willing to take on replacement cattle in spite of muddy pens in the major feeding regions. Winter Storm Nadia is tracking eastward late this week after dumping feet of snow to the West. It seems like Mother Nature wants winter to hang on as long as possible and cow-calf producers are sure wanting Punxsutawney Phil is correct and spring will be here very shortly.
Fed cattle prices were higher last week after six weeks of ho-hum steady markets. Feedyards just couldn't get over the proverbial hump to get to 125.00 until last week. This weeks trading has not yet been established as of this writing. Packers are very aware that cattle weights are not as large as they were last year this time, thus bringing less volume of meat to the market on similar head counts. This week's Valentine's Day holiday is one of the top 3 holidays for public eating out in restaurants with many of those customers choosing beef or a surf and turf for their entrees. Moving out of February and into March, a beef rally is expected to happen and with that should come increased fed cattle prices if the trickle down effect comes to fruition. When we get to warmer weather in the second quarter, middle meats will be front and center on retail ads with Mother's Day and Father's Day followed closely by Independence Day buying.
For the week, the Choice cutout closed 1.50 higher at 216.85, while Select was 0.18 lower at 210.99. Cattle Slaughter under federal inspection estimated at 596K for the week, 24K less than last week and 6K less than a year ago. Auction volume this week included 58 percent weighing over 600 lbs and 43 percent heifers.