Daily Livestock Report
Cattle Futures Commentary
Cattle futures trading quietly mixed yesterday, finishing firmer in the fats and
weaker in the feeders which were pressured by a rallying corn market. Do
note the USDA’s monthly Cattle on Feed data will be released this afternoon
where the trade will be expecting the Oct 1 on feed total to fall 2% below last
year, Sept placements to be off 15% from last year, and Sept marketings to
be down 10%. This placement total would be record small and down 13%
from the five year avg as placement activity dries up. Tighter feeder cattle
supplies as written extensively about here, poor feeding margins, and
improved pasture conditions on the Southern Plains all contributing to the
sharp reduction in placements. Interesting to read reports of JBS now taking
over operations for XL Foods’ Alberta plant in the wake of their food safety /
beef recall problems. Most importantly, JBS will be given the exclusive
opportunity to buy the entire company (2 Canadian plants, 2 US plants, 1
feedlot, and cropland) for $100 million and assume none of their previous
debt/liabilities.
Cash Cattle Markets
We did hear of some light cash cattle business in the North at $125, up $1+
from the prior week, with the industry generally expecting a $125 market in
the North and $126+ in the South.
