Cattle Market Notes: Week Ending November 20, 2015

Cash Cattle:
Cash traded fed cattle finished the week lower. The five-area fed steer price ended the week averaging $123.00 for live sales, and $194.50 for dressed; respectively, down $3.27 and $6.97. Total volume sold was up 15,000 head from a week ago and up 4,000 head from last year.
Feeder steer cattle and calves were lower across the U.S. this week. Oklahoma City feeder cattle were $3.50 lower for heavier steers and $5.00 lower than a week ago for lightweight steers. Mississippi pasture conditions are steady with 34% rated good or excellent, while 24% of Mississippi pastures are rated poor or very poor early this week. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds down $10.00 compared to a week ago, averaging $185.00, while heavy steers were averaging $144.50, up $4.50 from last week.
[ … For Livestock Prices and Production data and trends CLICK HERE … ]
Futures:
Live cattle futures and feeder futures were mixed this week. December live cattle were down $3.28 on the week and $41.40 lower than a year ago at $129.63, while February live cattle were down $1.45 from last week and down $40.55 from a year ago. Feeder cattle were mixed with January futures up $0.30 from last Friday and down $73.45 from a year ago at $162.98 while March futures are up $1.60 on the week. Nearby corn futures are up $0.05 from a week ago while May futures are up $0.04.
Beef:
Wholesale boxed beef prices are lower compared to a week ago. Choice boxes averaged $206.41, down $7.38 from a week ago and $48.38 lower than a year ago. Select boxes ended the week with an average of $195.18, down $8.29 from last week. The choice-select spread continued to widen from $10.32 a week ago to $11.23 this week.
November Cattle on Feed
The United States Department of Agriculture’s National Agricultural Statistics Service (USDA, NASS) released their monthly Cattle on Feed report Friday afternoon (November 20, 2015). The report revealed that 10.794 million head of cattle were in U.S. feedlots with a capacity of 1,000 head or larger on November 1, 2015. Placements into feedlots during the month of October totaled 2.281 million head while marketings during the same month totaled 1.630 million head. All of the numbers came in very close to expectations.
On a side note, I will be spending time with family during the Thanksgiving holiday next week and will not be writing the weekly Cattle Market Notes post. Have a Happy Thanksgiving!

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

November Cattle on Feed Recap

The United States Department of Agriculture’s National Agricultural Statistics Service (USDA, NASS) released their monthly Cattle on Feed report Friday afternoon (November 20, 2015). The report revealed that 10.794 million head of cattle were in U.S. feedlots with a capacity of 1,000 head or larger on November 1, 2015. Placements into feedlots during the month of October totaled 2.281 million head while marketings during the same month totaled 1.630 million head.
[ … For detailed numbers and charts CLICK HERE … ]
Placements totaled 2.281 million head, a decrease of 3.67% from October 2014 and a 4.34% decrease from the five-year average from 2010 to 2014. Market analyst expected placements to be down 3.9%, so the reported value was slightly higher than anticipated, although it was still within the range of analyst’s expectations. This month’s numbers continued the trend of declining lightweight placements, with all weight classes except for cattle larger than 800 pounds coming in lower than a year ago nationally. Cattle weighing less than 600 pounds saw the largest year-over year drop with a 7.2% decline in placements while cattle larger than 800 pounds saw a 5.5% year-over-year increase.
Cattle marketed in October totaled 1.630 million head, down 3.26% versus last year and down 8.12% compared to the average from 2010 to 2014. Pre-report expectations called for marketings to be 3.9% lower than the same period last year, so they were slightly higher than expectations.
The total number of cattle in feedlots with 1,000 head or larger capacity totaled 10.794 million head, up 2.11% versus November 1, 2014 but 3.27% lower than the five-year average. Market analysts expected a 2.2% year-over-year increase in cattle inventories, so the reported value was very close to expectations.

 

Cattle Market Notes: Week Ending November 13, 2015

Cash Cattle:

Cash traded fed cattle finished the week lower. The five-area fed steer price ended the week averaging $126.27 for live sales, and $201.47 for dressed; respectively, down $4.17 and $3.27. Total volume sold was down 7,000 head from a week ago and down 4,000 head from last year.

Feeder steer cattle and calves were lower across the U.S. this week. Oklahoma City feeder cattle were $15.00 lower for heavier steers and $12.50 lower than a week ago for lightweight steers. Mississippi pasture conditions continue to slowly improve with 35% rated good or excellent, while 26% of Mississippi pastures are rated poor or very poor early this week. Both of these numbers are improvements from a week ago. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds down $20.00 compared to a week ago, averaging $195.00, while heavy steers were averaging $140.00, down $10.00 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were both down across the board this week. December live cattle were down $1.95 on the week and $37.45 lower than a year ago at $132.90, while February live cattle were down $3.83 from last week and down $38.18 from a year ago. Feeder cattle were also lower with November futures down $9.10 from last Friday and down $67.38 from a year ago at $172.70 while March futures are down $9.42 on the week. Nearby corn futures are down $0.15 from a week ago while May futures are down $0.17.

Beef:                                                                                           

Wholesale boxed beef prices are lower compared to a week ago. Choice boxes averaged $213.79, down $4.74 from a week ago and $37.02 lower than a year ago. Select boxes ended the week with an average of $203.47, down $6.22 from last week. The choice-select spread continued to widen from $8.84 a week ago to $10.32 this week.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

Corn, Soybean Yields See Large Boost in Latest USDA Report

The corn balance sheet for the 2015/16 crop saw several changes from the October release. Ending stocks for the 2015/16 crop were revised up by 199 million bushels as a result of both higher production and lower disappearance. Yields were increased by 1.3 bu/acre to 169.3 bu/acre. The yield estimate is 0.9 bu/acre above what market analysts were expecting, which pushed total production up by 99 million bushels. This was roughly 75 million bushels higher than expected but still within the range of analyst’s expectations. The expected growth in the beef herd has helped to boost feed demand by 25 million bushels. Along with higher production, ethanol use was decreased by 75 million bushels and exports were reduced by 50 million bushels, leaving U.S. ending stocks well above even the highest analyst’s expectation. Global ending stocks were increased sharply from 187.83 million metric tons to 211.91 million metric tons. Much of the increase came from an increase in carryover from China. Mississippi corn yields are unchanged from last month’s estimate of 185 bu/acre. and production is expected to match last year’s production.

The soybean balance sheet also had several changes from the October WASDE report. Soybean harvested acres were unchanged from a month ago while yields were increased by 1.1 bu/acre. The increase in yields gave us an 88 million bushel increase in total production from a month ago. Yields were 0.8 bu/acre higher than pre-report expectations and where 0.3 bu/acre higher than the highest analyst’s estimate. Ending stocks came in 40 million bushels higher than a month ago but still within the range of analyst’s expectations. U.S. crush was revised up by 10 million bushels while exports were increased by 40 million bushels. Global ending stocks were reduced from 85.14 million metric tons to 82.86 million metric tons. Mississippi soybean yields remained unchanged at 46 bu/acre.

The 2015/16 wheat crop very few changes made to the balance sheet. Exports were reduced by 50 million bushels, which left ending stocks 50 million bushels higher. The remainder of the U.S. wheat balance sheet remained unchanged.

The cotton balance sheet saw only minor revisions from a month ago. Harvested acres were reduced by 20,000 acres from last month while yields were reduced by 2 pounds/acre from last month’s estimates. As a result, production was lowered by 60,000 bales from a month ago. Exports and domestic use were unchanged, while the amount of cotton unaccounted for decreased by 60,000 bales, leaving ending stocks unchanged from a month ago. Global cotton ending stocks were increased by 820,000 bales. Mississippi cotton yields were lowered by 45 pounds/acre to 1,067 pounds/acre.

Cattle Market Notes: Week Ending November 6, 2015

Cattle Market Notes: Week Ending November 6, 2015

 

Cash Cattle:

Cash traded fed cattle finished the week lower. The five-area fed steer price ended the week averaging $130.44 for live sales, and $204.74 for dressed; respectively, down $6.33 and $5.05. Total volume sold was up 10,000 head from a week ago and down 1,000 head from last year.

Feeder steer cattle and calves were mostly lower across the U.S. this week. Oklahoma City feeder cattle were $2.50 higher for heavier steers to $0.36 lower than a week ago for lightweight steers. Recent rains have helped Mississippi pasture conditions some with 30% rated good or excellent, while 35% of Mississippi pastures are rated poor or very poor early this week. Both of these numbers are improvements from a week ago. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were steady compared to a week ago, averaging $215.00, while heavy steers were averaging $150.00, down $13.00 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were both down across the board this week. December live cattle were up $1.78 on the week and $31.95 lower than a year ago at $134.85, while February live cattle were down $6.28 from last week and down $31.22 from a year ago. Feeder cattle were also lower with November futures down $9.10 from last Friday and down $56.72 from a year ago at $181.80 while March futures are down $9.95 on the week. Nearby corn futures are down $0.09 from a week ago while May futures are also down $0.09.

Beef:                                                                                           

Wholesale boxed beef prices are higher compared to a week ago. Choice boxes averaged $218.53, down $0.69 from a week ago and $31.82 lower than a year ago. Select boxes ended the week with an average of $209.69, down $1.63 from last week. The choice-select spread continued to widen from $7.90 a week ago to $8.84 this week.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.

 

Cattle Market Notes: Week Ending October 30, 2015

Cash Cattle:

Cash traded fed cattle finished the week higher. The five-area fed steer price ended the week averaging $136.77 for live sales, and $209.79 for dressed; respectively, up $6.77 and $2.69. Friday’s Nebraska daily direct live cattle were averaging $135.75 while dressed were selling for $210.00. Total volume sold was down 3,000 head from a week ago and unchanged from last year.

Feeder steer cattle and calves were mixed across the U.S. this week. Oklahoma City feeder cattle were trading $5.00 lower for heavier steers to $9.00 higher than a week ago for lightweight steers. Drought continues to plague Mississippi pasture conditions with 24% rated good or excellent, while 44% of Mississippi pastures are rated poor or very poor early last week. In Mississippi auctions, lighter weight feeders weighing 450-500 pounds were up $7.50 from a week ago, averaging $215.00, while heavy steers were averaging $163.00, down $3.50 from last week.

[ … For Livestock Prices and Production data and trends CLICK HERE … ]

Futures:

Live cattle futures and feeder futures were both down across the board this week. December live cattle were down $10.28 on the week and $33.15 lower than a year ago at $133.08, while February live cattle were down $1.47 from last week and down $22.80 from a year ago. Feeder cattle were also lower with November futures down $1.57 from last Friday and down $43.70 from a year ago at $190.90 while March futures are down $1.82 on the week. Nearby corn futures are up $0.02 from a week ago while May futures are up $0.04.

Beef:                                                                                           

Wholesale boxed beef prices are higher compared to a week ago. Choice boxes averaged $219.22, up $3.19 from a week ago and $32.57 lower than a year ago. Select boxes ended the week with an average of $211.32, up $1.55 from last week. The choice-select spread widened some from $6.26 a week ago to $7.90 this week.

Note: all cattle and beef prices are quoted in dollars per hundredweight and corn prices are quoted in dollars per bushel, unless stated otherwise.