Daily Livestock Report
Cattle Futures Commentary
Cattle futures starting near unchanged, but trading weaker throughout the
session as our weekly cash cattle trade failed to trade at higher levels. KS
and TX trading relatively light volumes of animals at $126, down $1 from the
prior week, while the North traded larger volumes at generally $195 dressed,
near unchanged from the prior week. This steady to lower trade is perhaps
viewed as a disappointment, but set in the context of a $14 rally in eight
weeks it perhaps shouldn’t come as a complete shock. Weekly export sales
at just 11,000 MT, a six month low, also disappointing the trade. Overnight
cattle futures are trading slightly firmer alongside firmer grains, energies,
equities, and others. The USDA will be releasing their monthly Cattle on
Feed report, which will be expected to show on feed supplies near
unchanged from a year ago, but up 5% form the five year average. August
placements expected to be down 7% from last year and down 3% from the
five year average. All of this implying adequate supplies of fed cattle through
year end and getting progressively tighter in 2013. USDA Cold Storage
report also out this afternoon.
