Steve Kay's Friday Market Update

FRIDAY AFTERNOON MARKET UPDATE  Aug. 28, 2015

The cash live cattle trade Friday morning was light to moderate up north and inactive down south. USDA’s Mandatory Price Reporting service reported that Nebraska sold 13,802 head at $227.84 per cwt dressed or $144.35 live for a weekly total of 17,413 head. Iowa-southern Minnesota sold 5330 head at $227.50 dressed or $143.84 live for a weekly total of 13,292 head. Kansas sold 121 head for a weekly total of 315 head. Texas sold no cattle for a weekly total of 436 head (all grid). The totals include negotiated cash and grid sales. Live cattle futures closed higher. August closed up 187 points at $146.52 (versus $148.45 last Friday), October closed up 142 points at $143.97, December closed up 120 points at $146.05, February closed up 122 points at $145.90, April closed up 92 points at $144.67 and June closed up 85 points at $136.60.

The week’s cattle slaughter was an estimated 545,000 head (versus 588,200 head last year), with Friday’s kill 105,000 head and Saturday’s kill 5000 head. Year to date FI slaughter is an estimated 18.594M head, down 7.0% or 1.394M head from 2014’s 19.988 head. Hog slaughter year to date is up 7.9% or 5.420M head on last year. Boxed beef cutout values were lower on Choice and steady on Select on light demand and offerings. The Choice cutout declined $0.99 per cwt from the day before to $243.22 per cwt (versus $244.90 last Friday) and the Select cutout declined $0.17 to $232.95 (versus $234.88 last Friday). The Choice-Select price spread was $10.27, versus $10.02 last Friday. The reported spot boxed beef trade for the week was 429 loads of fabricated cuts, 22.3% lower than the 552 loads the week before. Packer margins for the week were positive by $46.42 per head, compared to a positive $40.16 the week before, according to HedgersEdge.com.

Have a good week,

Steve Kay

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