Morning Livestock Report, 01/13/2016

Wednesday, January 13, 2016

The cattle markets managed another two-sided session yesterday, trading firmer early in the session before being pressed lower midday following the release of a weaker midday boxed beef cutout report. Rallying corn futures also pressed feeder cattle values midsession. By day’s end, the choice cutout index was reported down a slightly $0.14, our first loss since Dec 21, during which time we’ve rallied an incredible $44, and generally fitting with the industry’s expectation for topping beef markets sometime here in mid-January as slaughter schedules are back to normal and the post-holiday beef pipeline has been re-filled. USDA monthly supply/demand data out midday showed a reduction in their 2016 beef production estimate of 75 mil lbs, a 100 mil lb decrease in imports, and a 50 mil lb increase in exports, all combined taking 225 mil lbs out of domestic availability next year, roughly half of one week’s production. Do note that we did see some modest cash cattle trade take place in NE yesterday at $134 live, up from a $132 average there last week.

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.