Morning Livestock Report, 12/08/2015

Tuesday, December 8, 2015

The cattle markets started the week right where they left off last week -lower -and trading limit lower at one point yesterday morning. Nearby Dec live cattle futures synthetically trading as low as $120.02, which perhaps not coincidentally is the exact level Oct futures traded to in early Oct before staging a major rebound. This as the industry continues to fret about weak wholesale beef and cash cattle markets, alongside confirmation from the WTO they are awarding Canada and Mexico $1 billion in retaliatory tariffs. This was less than the $3 billion they’d asked for, but clearly not what this industry needs right now. Do note month of October beef import/export data out in recent days showed monthly exports down 14% vs last year. YTD exports are now down 13% vs 2014 and generally in line with current USDA forecasts. The bigger story perhaps comes in imports where monthly shipments were down 13% vs last year, our first y-o-y reduction in almost two years, with much slower shipments from Australia (approaching quota) and Brazil. 10 loads of deliveries were tendered to Worthing SD last night.

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.