Steve Kay's Friday Market Update

Aug. 29 -- The cash live cattle trade Friday morning was light at prices $1-3/cwt. higher than the week before. USDA’s mandatory price reporting (MPR) service reported that Nebraska sold 9,426 head at $155 live or $244.84 dressed for a weekly total of 12,524 head. Iowa-southern Minnesota sold 8,753 head at $154.68 live or $244.63 dressed for a weekly total of 12,758 head. Kansas sold 6,397 head at $155 live or $244.57 dressed for a weekly total of 7,356 head. Texas sold 1,134 head at $155 live for a weekly total of 2663 head. The MPR weekly totals include negotiated cash and grid sales.

Live cattle futures closed higher. August closed up 125 points and expired at $155.90/cwt. (vs. $151.85 last Friday), October closed up 132 points at $151.42, December closed up 125 points at $153.95, February closed up 82 points at $154.60, April closed up 77 points at $154.37 and June closed up 85 points at $146.05.

The week’s cattle slaughter was an estimated 584,000 head (vs. 633,066 head last year), with Friday’s kill 114,000 head and Saturday’s kill 10,000 head. Year-to-date FI slaughter is an estimated 19.978M head, down 7.0% or 1.504M head from 2013’s 21.482M head. Hog slaughter year to date is down 5.2% or 3.788M head on last year.

Boxed-beef cutout values were weak on light to moderate demand and moderate to heavy offerings. The Choice cutout declined $0.59/cwt. from the day before to $246.30/cwt. (vs. $249.77 last Friday) and the Select cutout declined $0.88 to $234.39 (vs. $239.66 last Friday). The Choice-Select price spread was $10.91, vs. $10.11 the Friday before. The reported spot boxed-beef trade for the week was 764 loads of fabricated cuts, up 10.6% from the 691 loads of fabricated cuts last week.

Packer margins for the week were positive by $62.82/head, compared to a positive $72.23 the week before, according to HedgersEdge.com.

Have a good week,

Steve Kay

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