Morning Livestock Report, 10/30/2015

Friday, October 30, 2015

Cattle futures traded to a mostly weaker finish yesterday, higher in the nearby expiring October live cattle contract and weaker across the deferreds and feeder cattle. Sharply lower hogs lending some pressure as did a weekly beef export sales total that was shockingly low. Weekly export sales aren't followed all that closely in the beef industry, but when the weekly sales total comes in at just 500 tons vs a 10,125 ton four week average, it raises a red flag. Futures also perhaps discouraged by week ending Oct 17 slaughter data out yesterday showing steer and heifer carcass weights up another 2 lbs vs the prior week and more record highs. If heavy carcasses were indeed part of the problem back in Aug-Sep, it doesn't appear to me like we're in any better shape now?? Weights will seasonally increase for another few weeks, but we're again increasing carcass weights at a faster than normal pace. Note there were 27 new deliveries posted against October futures last night to Worthing SD and Columbus NE, which makes 191 total contracts delivered this month.

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