Cattle Current Daily-June 14

Cattle Current Daily-June 14

Negotiated cash fed cattle trade was very limited on light demand in Kansas and Nebraska through Tuesday afternoon. There were a very limited amount of live purchases in Kansas at $130-$134/cwt. and a very limited number of dressed trades in Nebraska at $210-$216—too few transactions to trend in either region.

After early support, Cattle futures continued lower, helped along by scattered but lower early-week cash prices for fed cattle and the notion that wholesale values are due to break lower.

Live Cattle futures closed an average of 73¢ lower (45¢ to 90¢ lower).

Except for unchanged at the very back of the board, Feeder Cattle futures closed an average of $1.24 lower (80¢ to $1.60 lower).

Choice boxed beef cutout value was $1.33 lower Tuesday afternoon at $251.19/cwt. Select was 32¢ lower at $221.45.

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Major U.S. financial indices closed higher on Tuesday, with a rebound in tech stocks, which saw some liquidation in recent days.

The Dow Jones Industrial Average closed 92 points higher for a new record high. The S&P 500 closed 10 points higher. The NASDAQ closed 44 points higher.

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Lighter carcass weights, tied to aggressive feedlot marketing, continue to dilute the impact of increasing cattle numbers.

“Sharply lower carcass weights so far this year have held year-to-date beef production increases to roughly 4% over year-earlier levels…Beef production is currently projected to increase 3.4% year over year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Beef carcass weights appear to have bottomed seasonally but may remain below year ago levels for much of the remainder of the year…Cattle slaughter for the year to date is still running about 6% higher year over year, but slaughter rates for most classes of cattle have moderated recently and are expected to have smaller year-over-year increases in the second half of 2017.”

Combined with improving beef exports, Peel says per capita retail beef consumption is projected to increase less than 1% this year. Said another way, for the extra cattle numbers, domestic consumers will be faced with less than 1% more beef to consume this year.

2017-06-13T18:52:27+00:00

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