Morning Livestock Report, 10/15/2015

Thursday, October 15, 2015

Cattle futures trading firmer in the nearbys and weaker in the deferreds again yesterday, with the industry growing increasingly confident in another sharply higher cash cattle trade on tap this week. The Oct-Dec spread which almost traded all the way to -$9.00 early this month is now all the way back to -$3.67 as spreads and flat price futures recover just about as fast as they'd plunged in late September. We did see some packer bids shown at $125 yesterday, but with Oct futures at almost $134 one has to think we're looking at a $131+ market to develop by week's end. Note there were no physical deliveries or retenders posted last night for the first time this delivery period, perhaps a sign of confidence from producers that basis has corrected itself, and perhaps a sign that we no longer have a glut of unsold/unspoken for cattle. The beef carcass cutout indexes continue to move sharply higher, while trimmings specifically are still very much a mixed bag. Beef 90s were down another 2 cents to fresh lows yesterday, while beef 50s were up 4 cents to fresh highs.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial

Meet the Team

Kansas City, MO
1251 NW Briarcliff Parkway
Suite 800
Kansas City, MO 64116
Tel:+1 (816) 410-5079



Our privacy policy has changed. View our privacy policy to learn more.