Morning Livestock Report, 01/28/2016

Thursday, January 28, 2016

Live cattle futures staged another impressive rally yesterday, with the nearby Feb16 contract reaching just short of the daily $3.00 limit, before finishing $2.70 higher, amid forecasts for another winter storm for the major cattle areas of eastern CO, southern NE, western and northern KS, and much of IA. The storm is expected to bring heavy snows, with at least 6-12" accumulations and locally as much as 18". Such a storm would undoubtedly impact performance, so it’s path will be something to monitor. Gains in the other live cattle contracts ranged from $0.95 to $1.85, while feeder cattle futures finished mostly $0.67 to $1.42 higher. Outside of the weather, the news is not as supportive. The boxed beef markets continue to struggle. Yesterday, the choice lost $1.68 yesterday, the select lost $1.40. Look for a softer start for futures this morning, with the trade watching weather forecasts closely. Note, the January 1st cattle inventory report is set for release tomorrow afternoon and is generally expected to confirm herd growth of almost 2%.

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.

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