Cattle Current Daily—May 21, 2019

Cattle Current Daily—May 21, 2019

Cattle futures recovered from early pressure to pare losses Monday. Higher grain prices continue to weigh on Feeder Cattle.

Live Cattle futures closed narrowly mixed but mostly lower (from an average of 18¢ higher in three contracts to an average of 41¢ lower).

Feeder Cattle futures close an average of 58¢ lower.

Wholesale beef values were higher on Choice and steady on Select with moderate to fairly good demand and heavy offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.14 higher Monday afternoon at $221.45/cwt. Select was 25¢ lower at $208.03.

Corn futures closed 4¢ to 6¢ higher through Jul ’20, and then mostly 2¢ higher.

Soybean futures closed mostly 8¢ to 10¢ higher.

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Crop planting and development continues to lag the average, due to all of the weather preceding the season.

For instance, 49% of corn was planted as of May 19, according to the most recent USDA Crop Progress report. That’s 29% less than last year and 31% less than the 5-year average. 19% is emerged, which is 28% less than last year and 30% less than average.

Similarly, 19% of soybeans are in the ground, compared to 53% for the previous year and 47% for the average. 5% are emerged, which was 19% less than last year and 12% less than average.

Corn futures closed 4¢ to 6¢ higher through Jul ’20, and then mostly 2¢ higher.

Soybean futures closed mostly 8¢ to 10¢ higher.

The same wet conditions hampering crops continues to improve already-bullish pasture and range conditions.

66% of the nation’s pasture and range is rated in Good or Excellent condition, compared to 46% last year. 6% is rated as Poor or Very Poor, compared to 19% a year earlier.

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Major U.S. financial indices closed lower Monday, led by tech stocks, which were pressured by the trade impasse with China.

The Dow Jones Industrial Average closed 84 points lower. The S&P 500 closed 19 points lower. The NASDAQ was down 113 points.

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Cattle feeding economics continue getting tougher, at least on a cash to cash basis, not counting price risk management.

Consider the latest Historical and Projected Kansas Feedlot Net Returns from Kansas State University.

Net return for steers closed out in May is projected at -$101.23 per head with a feedlot cost of gain (FCOG) of $89.45/cwt. For the remainder of the year, estimates range from -$95.93 per head in December (FCOG of $95.93) to -$233.33 in September (FCOG of $90.91).

That’s with corn prices for the 2018-19 crop year projected at $3.50/bu., according to USDA’s most recent Feed Outlook. Price forecast for the 2019-20 crop year is $3.30.

2019-05-20T19:33:54-05:00

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