· This week in the markets – Cash fed cattle are $1 lower this week, feeder cattle auctions were steady to $2 higher. Cattle futures were up this week. The December live cattle futures contract closed $2.80 higher and November feeder cattle closed up $2.40. The Choice box beef price was $5.25 higher this week with strength across the board. Barrow and gilt prices were $1.25 lower this week and the December lean hogs futures contract closed $2.70 lower this week. The Pork Cutout value closed $.80 this week due to weakness in the bellies.
· Cold Storage – Total supply of beef in lockers was 8.5 percent below year-ago levels for September, while pork in cold storage was 1.6 percent higher than last year. Those are both supportive to cattle and hog prices. Hams were down nearly 13 million pounds relative to a year ago, likely due to strong export demand. Total beef, pork, chicken, and turkey was 116 million pounds below year-ago levels. Due in large part to a better poultry market outlook.
· Livestock Slaughter – Another report that confirms that we are growing meat supplies in this country. Pork production has been on the increase for 19 consecutive quarters. Beef production has been up 15 of the last 16 quarters. Chicken production has been up 26 of the last 28 quarters. Third quarter pork production was 6.2 percent higher than a year ago and beef production is 1.5 percent higher than last year at this time.
· Cattle on Feed – The report came close to pre-report average guesses. Cattle placements in September were at 102. Cattle on Feed as of October 1 came in at 98.9 percent. The percentage of heifers on feed continues to rise and has reached just over 39 percent for the third quarter of this year. While steers on feed continue to fall below year-ago levels.
· Next week’s reports: Restaurant Performance Index and Jobs Report
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