· This week in the markets – Live cattle prices were virtually unchanged this week and feeder cattle markets were steady to $3 lower. The February live cattle closed $2.70 higher this week and the February feeder cattle futures closed $4.50 higher. The Choice/Box beef price fell $8.70 this week on weakness across the board. Cash barrow and gilt prices were $.25 higher this week and February lean hog futures contract closed $1.80 higher. Pork cutout value ended $1.20 higher on strength in ham markets.
· Supply and Demand Estimates – If you look at WASDE for 2020 is expected to absorb about 60 percent of next year’s additional meat production. That’s better than this year’s 12 percent, but it still leaves more meat on the domestic market for 2020. The USDA pulled back projected hog prices again in December, those prices are now around $55 for next year.
· Retail Prices – The Choice Beef retail price for November increased $.17 relative to a month ago. While the November pork retail price fell by just over $.05 compared to last month. November bacon prices came in at $5.50, nearly $.15 lower than October. The Choice sirloin steak price came in at $8.32, just over $.09 higher than last month.
· Trade, trade, and more trade – There was progress announced this week on deals with USMCA and with China. But details remain elusive.
· Next Week’s Reports – Livestock Slaughter on Thursday and Cattle on Feed report on Friday.
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