FRIDAY AFTERNOON MARKET UPDATE December 2, 2016
The cash live cattle trade Friday morning was largely inactive. USDA’s mandatory price reporting service reported that Nebraska sold 1884 head at $114.00 per cwt live, with a few at $173.45 per cwt dressed, for a weekly total of 35,946 head. Iowa-Minnesota sold 655 head at $173.00 dressed for a weekly total of 29,666 head. Kansas sold 288 head for a weekly total of 26,469 head. Texas sold 68 head for a weekly total of 11,746 head. The MPR totals include negotiated cash and grid sales.
Live cattle futures closed moderately to sharply lower. December closed down 235 points at $108.22 (versus $110.75 last Friday), February closed down 250 points at $108.87, April closed down 217 points at $109.05, June closed down 162 points at $100.77, August closed down 120 points at $97.62 and October closed down 100 points at $97.97.
The week’s cattle slaughter was an estimated 616,000 head (versus 555,029 head last year), with Friday’s kill 113,000 head and Saturday’s kill 41,000 head.
Year-to-date cattle slaughter is an estimated 27.812M head, 1.486M head or 5.6% above the same period last year. Weekly hog slaughter totaled an estimated 2.540M head, the largest weekly total of the year. Year-to-date hog slaughter is an estimated 108.183M head, 1.871M head or 1.8% above the same period last year.
Boxed beef cutout values were lower on Choice and steady on Select on light to moderate demand and light offerings. The Choice cutout declined $0.79 per cwt from the day before to $189.72 per cwt (versus $187.64 last Friday) and the Select cutout declined $0.23 to $172.70 (versus $171.30 last Friday). The Choice-Select price spread was $17.02 versus $16.34 last Friday. The reported spot boxed beef trade for the week was 374 loads of fabricated cuts, 6.5% lower than the 400 loads the week before. Packer margins for the week were positive by $37.79 per head, compared to a positive $45.16 the week before, according to HedgersEdge.com.
Have a good week.