Post by Glenn on May 27, 2011 7:16:03 GMT -6
Packers closed out the week with ample supplies and little clean up trade. The majority of fed cattle trade took place at $104 in the south. Live cattle futures closed down $.52 at $104.02 par to cash.
Cattle on Feed numbers came in as expected posting large on feed numbers at 107%, placements were 110% and marketing at 97%. The placement numbers were very large as expected. One source mentioned the item to note is that 10% of the placement numbers were lightweight cattle or cattle pulled early of droughty country. So look for a large hole in our placement numbers to be on the horizon.
Box prices fell $.59 in the Choice to $178.44 while Select lost $.79 ending at $172.39. Box movement continues at a steady pace with more than adequate inventory on hand.
Feeder prices were $1.50 lower today and have been under pressure most of the week. The nearby Feeder contract closed at $123.02. The severe drought in Texas will create abnormalities in the placement patterns as witnessed by the April placement number. Current prices for a 750# steer on the southern plains is $126.
Corn was marginally higher today as the Midwest is in need of warm dry weather to get planted acreage moving along. Reports of some corn flooding out will reduce planted acre numbers, but maybe offset by yield. Feedlots are once again pressured into raising feed prices and watching as both the futures and basis are moving higher. Corn is being offered currently at 40 cents over July corn. Corn is now pricing into most rations at $13.50 cwt..
My note: Drought continues unabated in NW TX and SW Oklahoma. I think this is creating a mini "wall of supply" that is going to create a "donut hole" down the road. Tons of cows still flooding to market. Cow numbers at sale barns are twice to three times the average for this time of year.
Cattle on Feed numbers came in as expected posting large on feed numbers at 107%, placements were 110% and marketing at 97%. The placement numbers were very large as expected. One source mentioned the item to note is that 10% of the placement numbers were lightweight cattle or cattle pulled early of droughty country. So look for a large hole in our placement numbers to be on the horizon.
Box prices fell $.59 in the Choice to $178.44 while Select lost $.79 ending at $172.39. Box movement continues at a steady pace with more than adequate inventory on hand.
Feeder prices were $1.50 lower today and have been under pressure most of the week. The nearby Feeder contract closed at $123.02. The severe drought in Texas will create abnormalities in the placement patterns as witnessed by the April placement number. Current prices for a 750# steer on the southern plains is $126.
Corn was marginally higher today as the Midwest is in need of warm dry weather to get planted acreage moving along. Reports of some corn flooding out will reduce planted acre numbers, but maybe offset by yield. Feedlots are once again pressured into raising feed prices and watching as both the futures and basis are moving higher. Corn is being offered currently at 40 cents over July corn. Corn is now pricing into most rations at $13.50 cwt..
My note: Drought continues unabated in NW TX and SW Oklahoma. I think this is creating a mini "wall of supply" that is going to create a "donut hole" down the road. Tons of cows still flooding to market. Cow numbers at sale barns are twice to three times the average for this time of year.