Cattle Current Daily—Dec. 23, 2019

Cattle Current Daily—Dec. 23, 2019

Negotiated cash fed cattle prices were generally $1 higher on a live basis last week: $120/cwt. in the Southern Plains; $120-$121 in Nebraska and the western Corn Belt. Dressed sales were $2-$4 higher at $192.

Cattle futures meandered lower Friday, amid holiday trade. The monthly Cattle on Feed report issued after the close could add some pressure to start the week (see below).

Live Cattle futures closed an average of 16¢ lower, except for 10¢ and 17¢ higher in the front two contracts. 

Feeder Cattle futures closed an average of 39¢ lower.

Wholesale beef values were steady to firm on moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 71¢ higher Friday afternoon at $209.70/cwt. Select was 4¢ higher at $201.03.

Corn futures closed mostly 1¢ higher through Jul ’21 and then fractionally lower.

Soybean futures closed narrowly mixed through Aug ’20 and then fractionally lower to 1¢ lower.

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Major U.S. financial indices closed higher Friday. Support included continued optimism over the phase-one trade deal between the U.S. and China, as well as government data suggesting the U.S. economy continues to maintain its pace.

Based on its third estimate, real gross domestic product (GDP) increased at an annual rate of 2.1% in the third quarter, according to the U.S. Commerce Department. Personal income increased 0.5% from the prior month in November, the most since August.

The Dow Jones Industrial Average closed 78 points higher. The S&P 500 closed 15 points higher. The NASDAQ was up 37 points.

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Depending on trader expectations, Friday’s monthly Cattle on Feed report likely will be viewed as neutral to slightly bearish, with more placements than anticipated.

November placements in feedlots with 1,000 head or more capacity were 2.09 million head, which was 4.86% more than the prior year. Heading into the report, consensus view of analysts was for an increase of 1%.

In terms of placement weights, 53.51% went on feed weighing less than 700 lbs.; 35.02% weighing 700-899 lbs. and 11.46% weighing 900 lbs. or more.

Marketings in November were on par with expectations at 1.81 million head, which was 3.00% less than the prior year.

Likewise, the on-feed inventory Dec. 1 was close to expectations at 12.03 million head, which was 2.49% more than a year earlier.

2019-12-21T15:43:36-05:00

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