Morning Livestock Report, 01/05/2016

Tuesday, January 5, 2016

The cattle markets started the new year with a mixed performance yesterday, trading sharply lower early in the session before recovering by midday. Global equity market weakness, led by the Chinese, kept most commodities under pressure, but cattle futures not coincidentally put together a quick rebound about the time the morning boxed beef report showed wholesale beef prices sharply higher. By the afternoon tally the choice cutout was up $5.47, reportedly the largest one-day jump in more than a decade. Early talk is that this week’s slaughter total should fall somewhere in the 540-545K head range, disappointingly below the 556-586K seen just prior to the holidays. This will keep the beef pipeline clean longer than we’d expected, but also perhaps limit cash cattle market upside potential this week?? In addition, this week’s showlist count is unanimously larger than a week ago. Look for a firmer start this morning.

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