Cattle on Feed 5.5% Less Than Last Year
Dec 23, 2013
Good Morning! Paul Georgy with early morning comments for December 23, 2013 at 5:00 am.
Grain futures are quiet with corn and wheat near unchanged. Soybeans are stronger on near-term supply concerns. Crush margins are good as meal demand is the driver.
We’ll release our full 2014 price outlooks at our conference next month. Get full details on the conference here.
Trading volume will be light this week. Grain markets close at noon tomorrow and will reopen on Thursday at 8:30 am.
Trade will be watching for sales announcements at 8:00 am and any confirmation on the status of the China GMO situation.
Weather forecasts have added a little more rain in Argentina compared to what was expected when we went home on Friday.
Managed Money funds increased short positions in corn by 12,629 and wheat by 2,253 contracts. They added to long positions in soybeans by 9,451 contracts.
In outside markets the dollar is lower and gold is trading again below $1200.
The Cattle on Feed report was neutral to friendly. Total number of cattle on feed was 94.5% of a year ago and placements were 96.9% which was below trade expectations of 100.4%. Less cattle to place, better wheat pastures and holding back breeding stock could be the reasons for the lower placement number.
Beef cutout values were lower with choice down .92 and select down .35. The CME Feeder Index is 166.53.
Pork cutout value was down 1.07 on Friday. Hog slaughter data will be watched closely over the next few weeks as the holiday-shortened work week could back up some hogs.
Calls for the livestock opening would be steady to higher for cattle and steady for lean hogs.
Have a Joyous and Safe Holiday Season!
Markets as of 5:00 AM
- Mar Corn – 1/4
- Jan Beans +4
- Mar Wheat -1 1/4
- Feb Cattle Steady-Higher
- Feb Hogs Steady
- Mar Dlr -.12
- Mar S&P +8.00
- Feb Crude -.37
- Feb Gold -9.30
Chart of the Day
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