Morning Livestock Report, 11/23/2015

Monday, November 23, 2015

Despite the ongoing intra-day volatility, cattle futures will finish the week very near unchanged, down as much as $1 in the nearby Dec live cattle contract and up $1 in some of the far deferred contracts. Last week's cash trade was light once again, with the Northern trade taking place at disappointingly lower values. Weekly slaughter totaled 571K head, up from 570K head this same week last year. The USDA’s Cattle on Feed report looks about as neutral as I remember with all three categories coming very close to their pre-report estimates. Oct marketings were a record low and our on feed count continues to trend above prior-year levels. Interesting to see one of the well-followed banks forecasting live cattle prices at $120 12 months from now, modestly below $125 Dec16 futures. The Livestock Marketing Information Center also now estimates fed cattle prices down 3-5% in 2016 and down another 1-4% in 2017 on cyclically larger beef production which we’re already beginning to see.

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.