Cattle values were mostly higher again this week, with cash fed cattle jumping three bucks in just one week. The bulk of fed cattle in the Southern Plains traded last week at $92, compared to just $89 the previous week. Just as impressive, packers were already paying steady money on Tuesday of this week, as a number of Kansas cattle were sold at $92, with many feeders holding out for even higher prices. Much of the cash strength came from sharply higher boxed beef cutout values, with the Choice up $5.80 compared to last Tuesday, while the Select was up $7.02. The spread between Choice and Select is also nearing insignificance, with less than a dollar separating the two. Whether that is a function of higher production of Choice, higher demand for the more economical Select, or a combination of the two is still undecided, but the narrow spread is very definitely a factor in cattle marketing. After all, why spend the time and money necessary to make cattle grade Choice, when Select pays nearly as well.
Friday’s Cattle on Feed report was pretty much as expected, with total cattle on feed on February 1 down three percent compared to last year. Placements of feeder cattle were down two percent, although pre-report estimates expected them to be down by five percent. But marketings of fed cattle were higher than expected, somewhat offsetting the placement number. By the time the markets opened on Monday, the report had been all but forgotten.
Live cattle futures did work higher last week, with the February contract following the cash fed cattle market higher, gaining $1.27 for the week ended Tuesday. The April contract picked up only 25 cents for the same time period, with the June up 52, and August actually lost 15 cents, perhaps reacting to the higher than expected placement of feeders during January.
Feeder Cattle futures were near unchanged, as the March contract gained two cents, while April was up fifteen and October picked up a dime. Cash feeder markets were steady to firmer in early week trading, reflecting the future’s action.
Hog values were mostly higher, with the April contract up $1.17 for the week ended Tuesday, while May gained $1.22. Cash butchers were mixed, as Sioux Falls lost a buck in the past week, trading Tuesday at $49, while in Red Oak, cash hogs were up a buck at $47.
Grain prices were mostly lower this week, as Soybean and Wheat futures both lost 13 to 15 cents compared to last Tuesday. A weaker stock market, stronger dollar and some weakness in oil prices all helped pull down grain values. Excess moisture in South America was slowing harvest and exports for both soybeans and wheat were better than expected, but neither item was enough to offset the impact from the outside markets.
Corn futures prices were near steady this week, with less than a penny movement in any contract. Although exports were lower than expected, producers were holding tight to supplies and basis levels improved, while holding futures steady in an effort to get corn supplies moving.
The economy and outside markets will likely have a strong effect on the ag markets this week. With no major commodity reports due for release, any twitch in the stock market or oil prices, or any long-term weather prognostication could have a short-term, but strong impact on prices.
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Cattle values were mostly higher again this week, with cash fed cattle jumping three bucks in just one week. The bulk of fed cattle in the Southern Plains traded last week at $92, compared to just $89 the previous week. Just as impressive, packers were already paying steady money on Tuesday of this week, as a number of Kansas cattle were sold at $92, with many feeders holding out for even higher prices. Much of the cash strength came from sharply higher boxed beef cutout values, with the Choice up $5.80 compared to last Tuesday, while the Select was up $7.02. The spread between Choice and Select is also nearing insignificance, with less than a dollar separating the two. Whether that is a function of higher production of Choice, higher demand for the more economical Select, or a combination of the two is still undecided, but the narrow spread is very definitely a factor in cattle marketing. After all, why spend the time and money necessary to make cattle grade Choice, when Select pays nearly as well.
Friday’s Cattle on Feed report was pretty much as expected, with total cattle on feed on February 1 down three percent compared to last year. Placements of feeder cattle were down two percent, although pre-report estimates expected them to be down by five percent. But marketings of fed cattle were higher than expected, somewhat offsetting the placement number. By the time the markets opened on Monday, the report had been all but forgotten.
Live cattle futures did work higher last week, with the February contract following the cash fed cattle market higher, gaining $1.27 for the week ended Tuesday. The April contract picked up only 25 cents for the same time period, with the June up 52, and August actually lost 15 cents, perhaps reacting to the higher than expected placement of feeders during January.
Feeder Cattle futures were near unchanged, as the March contract gained two cents, while April was up fifteen and October picked up a dime. Cash feeder markets were steady to firmer in early week trading, reflecting the future’s action.
Hog values were mostly higher, with the April contract up $1.17 for the week ended Tuesday, while May gained $1.22. Cash butchers were mixed, as Sioux Falls lost a buck in the past week, trading Tuesday at $49, while in Red Oak, cash hogs were up a buck at $47.
Grain prices were mostly lower this week, as Soybean and Wheat futures both lost 13 to 15 cents compared to last Tuesday. A weaker stock market, stronger dollar and some weakness in oil prices all helped pull down grain values. Excess moisture in South America was slowing harvest and exports for both soybeans and wheat were better than expected, but neither item was enough to offset the impact from the outside markets.
Corn futures prices were near steady this week, with less than a penny movement in any contract. Although exports were lower than expected, producers were holding tight to supplies and basis levels improved, while holding futures steady in an effort to get corn supplies moving.
The economy and outside markets will likely have a strong effect on the ag markets this week. With no major commodity reports due for release, any twitch in the stock market or oil prices, or any long-term weather prognostication could have a short-term, but strong impact on prices.
