Summary for Friday, January 13th:
Slaughter Cattle: Friday trading has been limited on light demand in Nebraska and Western Cornbelt. In the Southern Plains and Colorado trading has been at a standstill. Not enough sales for a full market trend. Last week in the Texas Panhandle and Nebraska live sales sold from 117.00-118.00 and dressed sales in Nebraska sold at 188.00 on a light test. In Kansas and Colorado live sales sold at 118.00. For the prior week in the Western Cornbelt dressed sales sold at 188.00. The last live sales market in the Western Cornbelt was two weeks ago with sales from 116.00-118.00.
Negotiated Sales: Confirmed: 3,594 Week Ago: 3,028 Year Ago: 4,170
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 ranging from 268.00-270.00 delivered. Initial sales are steady to 5.00 higher than the previous week. Tentatively prices are on track to average above 160.00 this week. If realized this would be the highest close seen since the beginning of June. Fed prices have now strengthened for thirteen consecutive weeks.
under Federal Inspection:
Boxed Beef: Boxed beef cutout values higher on Choice and steady on Select on moderate to fairly good demand and moderate to heavy offerings. Select and Choice rib and round cuts steady while chuck and loin cuts mostly firm to higher. Beef trimmings not fully established.
Cattle Futures Summary: Cattle futures closed 95 cents to $1.45 higher with the April contract leading gains. Prices closed near their daily highs. February futures gained $3.70 on the week. Cattle futures will take their cue from the wholesale market next week. Traders have worried wholesale prices had peaked but the rebound seen on Friday tempered that concern. The ice and winter storms due this weekend will also impact movement, but Monday's demand will be light due to holiday shutdowns for many plants.
February Live Cattle Futures: 118.52...+1.05
April Live Cattle Futures: 117.92...+1.45
June Live Cattle Futures: 108.02...+1.20
January Feeder Cattle Futures: 130.45...+0.13
March Feeder Cattle Futures: 129.30...+1.55
April Feeder Cattle Futures: 128.85...+1.55
Feeder Cattle Index: 132.03...-0.57
Hog Futures Summary: Most lean hog contracts posted their fourth straight day of price gains to end the week higher overall. February hogs saw some profit-taking today, but posted a weekly gain of $1.62 1/2. While pork cutout values softened this week and movement was lackluster, packer demand for hogs remained strong due to still-lofty margins. With winter storms in the forecast for the Midwest early next week, we expect the cash market to be stronger early next week, which would be supportive for futures.
February Lean Hog Futures: 65.60...-0.35
National Grain Market Summary: Compared to last week, grain and soybean were mixed. Soybeans saw support from concerns over weather conditions in South America. The January Supply and Demand Report was released on Thursday with USDA reducing soybean ending stocks by 60 mb, now at 420 mb. Corn ending stocks were also reduced from 2.403 to 2.355 billion bushels. Export sales and shipments for wheat totaled 14.4 mb and 6.3 mb, respectively. For corn, export sales totaled 29.7 mb and shipments were at 27.3 mb. The report is neutral to bearish for wheat and corn. Export sales for soybeans totaled 10.7 mb and shipments totaled 52.6 mb. These numbers may be viewed as bullish for soybeans. Wheat was steady to 33 cents higher. Corn was mostly steady to 11 cents lower. Sorghum was 5 cents lower. Soybeans were 22-27 cents higher.
Kansas City Corn: 3.40...Unchanged
Kansas City Soybeans: 9.98...+0.06
Kansas City Wheat: 3.84...+0.04
Corn Futures Summary: Corn futures closed near their highs for the day with fractional gains. The March contract closed fractionally higher on the week. Corn futures will struggle to move higher on their own as traders continue to focus on the higher-than-expected stocks on hand reported by USDA. The direction in the dollar along with soybean and wheat prices will have a lot of influence on corn's trade next week.
March Corn Futures: 3.5850...+0.0025
Soybean Futures Summary: Soybean futures settled around 6 cents higher in the March through July contracts. The November contract ended 2 cents higher for the day. For the week, March soybean futures rallied more than 50 cents. Much of traders' focus coming out of the long holiday weekend will be on Argentine weather. Central Argentina is in line for more heavy rains this weekend and soils are already saturated.
March Soybean Futures: 10.4625...+0.0600
Wheat Futures Summary: Wheat futures faced pressure overnight and early this morning, but the market strengthened ahead of midday and futures settled high-range for the day. SRW wheat ended 1/2 to 2 3/4 cents higher in all but the front-month that settled fractionally lower. HRW wheat posted gains of around 4 cents. And HRS wheat posted gains ranging from 4 1/4 to 8 3/4 cents. The SRW wheat market edged out slight gains for the week. Attention next week will be on whether a cold snap in the European Union and the Black Sea region does any damage.
March Wheat Futures: 4.2600...-0.0025
Nearby Crude Oil Futures Contract: 52.37...-0.64
Dow Jones Industrial Average: 19,885.73...-5.27
U.S. Dollar Index: 101.21...-0.16
Feeder & Stocker Cattle Summary
Compared to last week, calves under 600 lbs sold unevenly steady ranging from steady to 4.00 higher to 4.00 lower with some spots 6.00 to 10.00 higher throughout all regions. Yearlings trading steady to 3.00 lower with some spots up to 6.00 lower. The first full week of direct trading occurred with most trends reported steady to 4.00 higher. Many producers have been waiting for this week to sell their spring born calf-crop, evidenced by the showing of nearly 500K head sold though auctions, directs and video sales this week. That is the second largest volume reported on this report in the last five years; only topped by week ending 7/17/2015 when nearly 2/3 of the reported receipts of 554,900 were video sales.
Producers throughout the country have not liked the prices through fall and when December finally got here, most were prepared to carry cattle until the new year. Demand was good to very good this week in auctions as order buyers had plenty of orders to fill, especially Monday through Wednesday when several of the larger receipt auctions in the country took place. Even though there were plenty of cattle headed to feedyards, several auctions in the North Plains had heifers marked as Replacement on their market reports. On Wednesday in Kearney, NE at Huss-Platte Valley Livestock Auction, a half load of light 7-weight replacement quality heifers sold from 177.00-177.25 or just a tick over $1300/head average. Wow what a ticket!
Fed cattle prices not established as of mid-day on Friday with feedyards wanting to push the market higher than the 117.00 to 118.00 live and 188.00 dressed market of last week. Some uncertain weather that is to roll into the Central Plains over the weekend may just keep the packers somewhat on the sidelines due to the extreme ice forecasted. Slaughter levels topped 600K again this week, with the packers picking up right where they left off after the holidays. Cattle slaughter for CY2016 reported at 30.1M head; nearly 2 million more than 2015 and 1 million under the previous 5 year average.
CME Live Cattle futures closed the week 3.22 to 4.05 higher than last Friday, with most of the gain coming from Monday and Tuesday. Also, the Feeder Cattle contracts were 2.13 to 5.50 higher for the week with limit or near limit move ups on the March and April on Tuesday. Choice Boxed beef values have eroded this week to the tune of 8.01 to close at 190.80. In addition, the Choice - Select spread has shrunk to around 4.00 after being near 10.00 at the turn of the year. Auction volume this week included 59 percent weighing over 600 lbs and 40 percent heifers.
Livestock Auction - Apache OK...
Livestock Auction - Dalhart, TX...
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Livestock Auction - Pratt KS...
& Ranchers Livestock - Salina KS...
Stockyard - Cullman AL...
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Spring Livestock Auction -Siloam Spring AR...
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Angelo Cattle And Calf Auction - San Angelo TX...
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WA Livestock Auction - Toppenish WA...
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Although all information
is from sources believed to be accurate & timely,