Cattle Current Daily—Dec. 17, 2019

Cattle Current Daily—Dec. 17, 2019

Negotiated cash fed cattle trade ended up steady to $1 higher in the Southern Plains last week at $119/cwt. on a live basis; steady to $2.50 higher in the Northern Plains at $119.00-$120.50. Dressed trade was steady to $2 higher at $188-$190.

Week to week the 5-area average direct live steer price was just 25¢ higher at $119.17, but with average live weights 34 lbs. heavier at 1,506 lbs. In the beef, the average steer price was 10¢ less at $188.00 with average dressed weights 45 lbs. heavier at 992 lbs.

Cattle futures wandered narrowly lower Monday, maintaining most of the previous session’s strong gains, and in the face of higher Corn futures.

Live Cattle futures closed an average of 18¢ lower, except for 5¢ higher in the back contract.

Feeder Cattle futures closed an average of 43¢ lower, except for 5¢ higher in the back contract

Wholesale beef values were higher on light to moderate demand and offerings, according to the Agricultural Marketing Service. Gains over the last two days suggest the seasonal bottom might be established.

Choice boxed beef cutout value was 79¢ higher Monday afternoon at $217.08/cwt. Select was $1.27 higher at $205.51.

Corn futures closed mostly 5¢ to 6¢ higher through Jly ‘21; and then mostly 2¢ to 3¢ higher.

Soybean futures closed 10¢ to 14¢ higher through Jan. ’21 and then mostly 3¢ higher.

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Major U.S. financial indices closed higher on Monday, with follow-through optimism from the U.S.-China phase-one trade deal announced last week.

The Dow Jones Industrial Average closed 100 points higher. The S&P 500 closed 22 points higher. The NASDAQ was up 79 points.

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Hide prices continue to dilute byproduct value, which ranged from $8.24/cwt. to $9.30 so far this year.

“Hide values are down 32% from a year ago from January to November,” say analysts with the Livestock Marketing Information Center (LMIC). “On a per hundredweight basis, January through November of 2019 (hides) averaged $47.85/cwt. compared to $70.37 in 2018. This year’s values will be the lowest annual average for hides since the start of this data set in 1992.”

Based on data from USDA’s Foreign Agricultural Service (FAS) for January through October, they say cattle hides that were sold as parts are 74% less than last year and those sold whole are down 5%.

Meat and bone meal is 14% less than the same period last year, although some offal prices are higher, such as for tripe and tongues, which are up 34% and 25%, respectively.

In the latest Livestock Monitor, LMIC analysts say most offal products are consumed overseas. For example, they explain South Africa is the largest destination for U.S. bovine kidneys. Purchases by that nation are up 26% year-over-year and kidney prices are 13% higher.

Similarly, Egypt buys more than half of the beef livers exported by the U.S,; those prices are up 3%.

2019-12-16T20:28:01-06:00

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