A negative carry in live cattle futures shows a lack of confidence in the market’s strength going forward. Normally, a futures market will have a positive carry, meaning successive months trade at somewhat higher prices to cover just enough of the actual carrying cost of a commodity to keep it from coming to market all … Read More

Market analysts said the USDA’s Cattle Inventory report Tuesday may be perceived bearishly by live cattle futures traders, especially when taken in conjunction with the USDA’s Cattle on Feed report and the cold storage report. All three reports showed greater inventories that must be worked through, they said.  And if foreign trade declines, it will … Read More

The latest fed-cattle rally has taken feedlot margins well into the black for the ninth straight week, while packers had their worst margin week in months, according to the Sterling Beef Profit Tracker, published by AgWeb. For the week ended Jan. 20, the USDA’s five-area direct price of $122 per cwt, boosting average calculated unhedged … Read More

Managed money, or large investment funds, extended their net long live cattle position for the 11th straight week during the week ended Tuesday as commercial traders extended their net short position for the 11th week. The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday said managed money had a net long live cattle … Read More

Consumer-level food prices are expected to rise this year, reversing an uneven trend lower in 2016, as poultry, fish and seafood, and dairy prices are likely to see gains, The USDA’s Economic Research Service said in its latest Food Price Outlook, 2017. The predictions were somewhat tentative at this point.  Restaurant food purchases in December … Read More

Total red meat supplies in US cold storage on Dec. 31 were 1.085 billion pounds, up 5,910, or 0.55%, from November’s 1.079 billion but down 20,774, or 1.88%, from 1.106 billion last year, the USDA said in its monthly Cold Storage report. Total pounds of beef in the nation’s freezers were 567.002 million, up 36.049 … Read More

Steer hide and offal values are continuing their 2016 trend toward a gentle, though uneven, climb toward the 2011-2015 average. In the latest week, the total hide and offal value, called the drop credit since it entails everything that is removed, or dropped, from the carcass, was $11.95 per cwt.  This was up $0.03 from … Read More