Fed Cattle, Beef Prices Show Divergence

Cash fed cattle prices in the Plains are reaching a decision point.  Either they peak within the week or they reach an annual top sometime in late March or late April. The data show beef prices have a strong spring seasonal higher, but cattle prices may fade. There has been some debate among cattle traders … Read More

Funds Get Longer Cattle Week Ended Jan. 15

As the Commodity Futures Trading Commission continues to catch up with delayed Commitments of Traders reports, the latest data show large commodity investment funds, or managed money, again adding to their collective net long live cattle position during the week ended Jan. 15. Managed money’s new cattle position was 98,061 contracts, up 3,665, or 3.88%, … Read More

Beef Export Records Continue; Pork Not So Much

US beef exports in November continued to set a record pace, while pork exports trended lower than 2017, said the US Meat Export Federation while commenting on data from the USDA’s Economic Research Service and the Foreign Agriculture Service. Monthly meat export data was delayed by the partial government shutdown.  Year-end 2018 data was expected … Read More

Funds Push Net Long Cattle Position

Large commodity investment firms, called managed money, advanced their collective net long live cattle futures position to 94,396 contracts during the week ended Tuesday, Jan. 8, from 92,945 the previous week. The data came from the Commodity Futures Trading Commission’s Commitments of Traders report, delayed by the partial government shutdown and released on Friday. The … Read More

WASDE Lowers Meat, Poultry Production Outlook

The USDA’s World Outlook Board Friday lowered its estimate of total red meat and poultry production for 2018 to 102.377 billion pounds from its December estimate of 102.580 billion as beef and broiler production more than offset slightly higher pork production. The estimates were made in the latest World Agriculture Supply and Demand Estimates report.  … Read More

Economist: Feedlots Face Challenge In 2019

Current feedlot breakevens and fed cattle price projections suggest 2018’s losses will continue into 2019, said Purdue University Agricultural Economist Michael Langemeier in the Illinois Extension Service’s farmdocdaily. Given the recent stability in feeding cost of gain, net return projections for the next few months primarily are driven by the feeder-to-fed price ratio, Langemeier said. … Read More

FOMC Moves Ease Market Tensions

The Federal Open Market Committee left its target range for the Federal Funds interest rate unchanged at 2.25% to 2.50%, easing equity and commodity market fears of further monetary tightening, and indicated fewer increases in the target range for 2019 than last year. Last fall, Federal Reserve Chairman Jerome Powell made noises that the Federal … Read More