Morning Livestock Report, 10/13/2015

Tuesday, October 13, 2015

The cattle markets started the week on a firmer note yesterday, led by the nearby Oct contract, despite a cash trade that (albeit higher than the prior week) was still $4-7 under current futures at the time of trade. This week's showlist count is reportedly smaller than last week and early ideas have the cash market trading at something higher than last week's $126-127 market. Could the very wide Oct-Dec spread be at least partially responsible for the tighter showlist count?? We hear some evidence of producers tempted by the ~$6 premium in Dec to defer marketings until November, which would take some supply off the market now, but of course would NOT be an ideal strategy to clean up heavy carcass weight problems. Boxed beef prices also traded solidly higher yesterday for the first time in almost two months, with the choice cutout up $2.30. Interesting to see Friday's CFTC data, showing the "managed money" speculative trader category as net buyers for the week ending Tues Oct 6, their second consecutive week of being net buyers, as futures plunged from $136 to $125.

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