Steve Kay's Friday Market Update



The cash live cattle trade Friday morning was largely inactive. USDA’s mandatory
price reporting service reported that Nebraska sold 401 head for a weekly total
of 4259 head. Iowa-southern Minnesota sold 630 head for a weekly total of 4917
head. Kansas sold 124 head for a weekly total of 172 head. Texas sold no cattle
for a weekly total of 274 head (all grid). The MPR totals include negotiated
cash and grid sales.

Live cattle futures closed somewhat higher. December closed
up 90 points at $131.85 (versus $129.70 last Friday), February closed up 75
points at $133.87 and April closed up 30 points at $134.20.

The week’s cattle slaughter was an estimated 462,000 head (versus 491,978 head
last year), with Friday’s kill 98,000 head and Saturday’s kill 33,000 head. Year
to date FI slaughter is an estimated 25.777M head, down 5.5% or 1.500M head from
2014’s 27.277M head. Hog slaughter year to date is up 7.9% or 7.578M head on
last year.

Boxed beef cutout values were firm to higher on moderate to fairly
good demand and light offerings. The Choice cutout increased $0.31 per cwt from
the day before to $204.40 per cwt (versus $203.14 last Friday) and the Select
cutout increased $1.74 to $195.50 (versus $190.95 last Friday). The
Choice-Select price spread was $8.90 versus $12.19 last Friday. The reported
spot boxed beef trade for the week was 433 loads of fabricated cuts, 24.8% lower
than the 576 loads the week. Packer margins for the week were negative by $17.68
per head, compared to a negative $20.20 the week before, according to

Have a good wee.

Steve Kay



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