Morning Livestock Report, 12/17/2015

Thursday, December 17, 2015

Our weekly cash cattle trade became more active yesterday at mostly lower values and futures spent most of the session on the defensive, giving back much of the gains we saw on Tuesday. Pre-report COF estimates were released yesterday, showing the industry looking for the on feed count to be up 0.9% versus last year, Nov placements down 4.1%, and Nov marketings up 3.4%. One extra business day this year versus last accounts for most of that increase in marketings, but also means the placement pace was even slower than the y-o-y number taken at face value. Volatile markets, terrible closeout losses, and poor forward margins all contributing to the slow placement pace. This would be our fifth consecutive month of below-year-ago placements, despite the fact we’ve actually got more feeder cattle available, as many as 1.0-1.2 million more head accumulating outside of feedyards. It’s not a coincidence the forward feeder-fat spreads continue to narrow with some profitable placement opportunities now finally being seen.

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.