Cattle Current Daily—Dec. 30, 2019

Cattle Current Daily—Dec. 30, 2019

Negotiated cash fed cattle trade was yet to be fully developed through Friday afternoon, but early prices were higher. The Texas Cattle Feeders Association reported its members trading at $122/cwt., which was $2 higher than the previous week. Likewise, AMS reported live sales in Kansas at $122, which was $2 higher than the prior week. In Nebraska, dressed sales were mostly $3 higher at mostly $196. Although too few to trend, early dressed sales in the western Corn Belt were $3-$4 higher at $195-$196.

Stronger cash undertones helped Cattle futures maintain most of the gains from the previous session.

Except for 10¢ lower in near Feb and unchanged in Jun, Live Cattle futures closed an average of 16¢ higher.

Except for 10¢ higher in spot Jan, Feeder Cattle futures closed an average of 22¢ lower.

Wholesale beef values were weak to lower on light demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.19 lower Friday afternoon at $208.96/cwt. Select was 68¢ lower at $204.57.

Corn futures closed 1¢ higher through Sep ’20 and then mostly unchanged to fractionally lower.

Soybean futures closed 2¢ to 8¢ lower through Jan ’21 and then fractionally lower.

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Major U.S. financial indices closed narrowly mixed Friday, with limited market news.

The Dow Jones Industrial Average closed 23 points higher. The S&P 500 closed fractionally higher. The NASDAQ was down 15 points.

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Lower calf and feeder cattle prices, along with strengthening fed cattle prices appear to be improving economic returns to the feedlot, according to the most recent Historical and Projected Kansas Feedlot Net Returns. Keep in mind that projections are on a cash to cash basis, without accounting for any price risk management, carcass premiums, etc.

Projections for fed steer and heifer net returnssold in October were -$145.12 and -$82.95 per head, respectively. Losses declined in November to -$69.79 for steers and -$22.21 for heifers.

For the next nine months, though, projections are for steers to be in the black six months, from $52.39 per head in May to $149.67 in December. Negative net returns range from -26¢ in July to -$24.87 in April.

Similarly, fed heifers are projected  to return $23.43 (April) to $125.36 (December) per head for the next six months, followed by negative returns of -$2.21 (July) to -$21.37 (August).

2019-12-28T16:16:56-05:00

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