Cattle Current Daily—Nov. 9, 2020

Cattle Current Daily—Nov. 9, 2020

Negotiated cash fed cattle prices for the week were $1 higher than the previous week in the Southern Plains at $107/cwt. on a live basis, $4-$6 higher in Nebraska at $107/cwt., and $3-$4 higher in the western Corn Belt at $105-$106. Dressed trade was $2-$9 higher at $167, according to the Agricultural Marketing Service.

Through Thursday, the five-area weighted average fed steer price was $106.35/cwt., $2.19 higher than the previous week, but $7.81 less than the same time a year earlier. The average steer price in the beef was $165.30, which was $5.60 less than the prior week and $16.11 less than the previous year.

Estimated total cattle slaughter for the week ending Nov. 7 of 647,000 would be 9,000 more than the previous week, but 10,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 27.4 million head is 1.06 million head fewer (-3.73%) than the same period last year. Year-to-date estimated beef production of 22.76 billion lbs. is 252.7 million lbs. less (-1.11%) than a year earlier.

Cattle futures closed mixed Friday, with Live Cattle edging higher and Feeder Cattle trading narrowly mixed. Support included the week’s higher cash prices and stronger wholesale beef values.

Cattle futures closed mixed Friday, with Live Cattle edging higher and Feeder Cattle trading narrowly mixed. Support included the week’s higher cash prices and stronger wholesale beef values.

Live Cattle futures closed an average of 41¢ higher.

Feeder Cattle futures closed mixed, from an average of 52¢ lower in the back three contracts to an average of 31¢ higher, except for unchanged in May.

Choice boxed beef cutout value was $1.77 higher Friday afternoon at $214.32/cwt. Select was 48¢ lower at $198.49.

Corn futures closed mostly fractionally lower to 1¢ lower.

Soybean futures closed mostly 2¢ to 3¢ higher, except for 2¢ to 3¢ lower in the front two contracts.

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Major U.S. financial indices tread water Friday with likely profit taking from the week’s broad step higher, as well as a national jobs report that was more positive than the trade expected.

Total non-farm payroll employment rose by 638,000 in October, and the unemployment rate declined to 6.9%, according to the U.S. Bureau of Labor Statistics. Average hourly earnings for all employees on private non-farm payrolls increased by 4¢ in October to $29.50.

The Dow Jones Industrial Average down 66 points lower. The S&P 500 closed 1 point lower. The NASDAQ closed 4 points lower.

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“Daily Choice boxed beef started climbing again in the first week of November. Rib, chuck, and round all inched higher throughout the week, giving hope to some seasonal demand for cuts born from those primals,” say analysts with the Livestock Marketing Information Center (LMIC), in the latest issue of Livestock Monitor. “Last year, Choice boxed beef was setting a new record and at that time was the highest value for the cutout. This year, that cutout value was eclipsed in April, but values have been unable to climb over a year ago since about mid-October.”

The decline in the cutout is about 10% below a year ago, ribs down about 4%, chuck down 9%, loins down 12%, and flanks down 10% year-over-year in Friday’s data, according to LMIC.

Similarly, those analysts explain, thus far in the fourth quarter, brisket value is down about 22-30% compared to the same time last year; short plates down 5-20%; round down 5-9%.

“Beef demand in the fourth quarter in recent years has been supportive for cattle prices,” say LMIC analysts. “This number is one we will have to continue to watch this year for signs the U.S. economy is recovering, though all primals are not considered equal in this timeframe. Rib primal values have been the primary benefactor of increased consumer demand in other years, while chuck and rounds seem to have more staying power through the first quarter.”

2020-11-07T16:09:27-06:00

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