Cattle Market
Notes
Dr. John Michael Riley March 15, 2013
Cash Cattle:Cash trade slowed this week on the heels of strong prices last week. Packers are assumed to be working off contracts for this week's slaughter and staying on the sidelines for the time being in the cash market. In the Central and Southern Plains (Kansas and south) the volume of trade was light but called at $127/cwt on a live basis. In Nebraska live and dressed cattle were lower at $126-$127/cwt and $201/cwt, respectively. In the rest of the Western Cornbelt, trade was light at $124-$125/cwt on a live basis and $200/cwt for dressed cattle.
Futures:
Live cattle futures were lower this week. Carry-over from last week was seen early in the week. A surge in cash prices helped buoy prices to close out last week and many expected the trend to continue. However, cash trade did not develop for the most part and by mid-week concern was mounting. This became more evident as the week ended with Thursday and Friday providing the major blow to prices. Those with long (a.k.a. "bought") positions started selling to exit those positions which pushed prices lower. Corn futures were higher this week as the market rallied on last week's supply/demand report, which revealed total domestic corn use higher by 100 million bushels stemming from the feeding industry (higher imports and lower exports left the amount expected to be carried over unchanged at 632 million bushels).
Beef:
Wholesale boxed beef prices continue to march higher. Choice finished with a weekly average of $196.75/cwt, up $1.73, and Select finished at $195.27/cwt, up $2.39, and leaving the Choice-Select spread at a very narrow $1.47/cwt. The current value of Select boxed beef sets a new (non-inflation adjusted) record previously set in early March of last year. Both Choice and Select are up approximately $15/cwt over the past three to four weeks.can be expected.
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March
19 Pontotoc CCA 19 Lowndes CCA
19 Prentiss CCA
19 Noxubee CCA
19 Rankin CCA
21 Webster CCA
21 Franklin CCA
21 Hinds CCA
21 Lee CCA
21 Covington CCA
21 Simpson CCA
28 CLM CCA
28 Walthall CCA
28 Neshoba CCA
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