Cattle Current Daily-Aug. 15, 2018

Cattle Current Daily-Aug. 15, 2018

Live Cattle futures closed a touch higher Tuesday, supported by stronger wholesale beef values. Feeder Cattle futures mostly leaked lower, perhaps helped along by the surge in grain markets. However, trade was extremely light in both pits.

Live Cattle futures closed an average of 36¢ higher.

Except for an average of 25¢ higher in the front two contracts, Feeder Cattle futures closed an average of 32¢ lower (5¢ to 80¢ lower).

Boxed beef cutout values were higher on moderate to good demand and light to moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.21 higher Tuesday afternoon at $209.64/cwt. Select was $1.61 higher at $201.27.

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Major U.S. financial indices closed higher Tuesday, supported by a rebound in Turkey’s currency, quelling some concerns about that nation’s economy, at least for a day. Tech stocks and robust quarterly earnings from the likes of Home Depot added support.

The Dow Jones Industrial average closed 112 points higher. The S&P 500 closed 18 points higher. The NASDAQ was up 51 points.

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With Labor Day approaching—the last beef-boosting holiday for several months—Stephen Koontz, agricultural economist at Colorado State University sees little potential for cattle and beef price improvement. That has mostly to do with bountiful supplies.

In the latest issue of In the Cattle Markets, Koontz notes the seasonal increase in beef volume, as well as increased cow slaughter due to drought.

“Events in substitute meat markets and trade demand also appear unlikely to provide substantial relief for beef prices,” Koontz says. “Pork production will be up a solid 5% this coming fourth quarter, with consumption up a likely 2.5%. Poultry production and consumption are forecasted to be up moderately but the main word to focus on is, ‘up’ from the prior year.

“Beef exports have been solid through the summer. If they continue through the fall, then this could result in about an additional 40 million lbs. per month removed from the domestic markets this year compared to last. This is a little less than 2% of typical monthly production during fourth-quarter months. Forecasts of beef production during the fourth quarter are to be up better than 3%.”

2018-08-14T20:00:47-05:00

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