Cattle Market Notes – Week Ending Jun 28, 2013


Cash Cattle:

The five-area cash price ended the week at $120.69/cwt on a live basis, a slight drop from last Friday’s $121.37. The five-area dressed price ended the week at 186.05. In Texas, live cattle traded at $119/cwt on Thursday while Kansas and Nebraska live cattle trade was too light to call.

In Oklahoma City, feeder steers were $1-$4/cwt higher, while heifers sold $1-$3/cwt higher. Demand was strong for all weights despite the very warm temperatures this week. In Mississippi auction markets, feeder steers and heifers were trading $2-$5/cwt higher. Slaughter cows were $1-$2/cwt higher, while bulls were mostly steady.

Continue reading “Cattle Market Notes – Week Ending Jun 28, 2013”

Crop Market Update (with Acreage and Stocks report) – Week Ending June 28


Friday’s acreage report came as a big surprise to many. Most analysts were expecting corn acreage to be revised down about 2 million acres to 95.34 million; however the USDA’s acreage report estimated corn acres at 97.38 million. This was a slight increase over the March Prospective Plantings report of 97.28, which has been the baseline since that time. National corn stocks were reported at 2.76 billion bushels, slightly below the expected 2.85 billion bushels. Nearby July corn futures were impacted by the grain stocks report, closing up 12 cents on the day but new crop futures took a hit in response to the acreage report with September 2013 corn futures closing down 25 cents and December corn closing down 27 cents. With an acreage report estimate of 77.73 million acres, soybeans came in slightly below the expected 78.02 million acres predicted by many analysts but above the 77.13 million acres reported in the June WASDE report (which had been unchanged from March’s report). Soybean stocks came in slightly lower than expected at 435 million bushels compared to the pre-report guess of 441 million bushels. July soybean futures responded positively the reports, closing up 16 cents on the day to finish off a strong week that saw an increase of 71 cents. September new crop soybeans closed down 14 cents on the day. The wheat acreage estimate was surprisingly higher than expected as well. USDA reported all wheat acres at 56.53 million acres compared to an expectation of 55.75 million acres. Winter wheat acreage is reported as 2% higher than the previous estimate as well. Wheat in storage was 32 million bushels lower than analysts expected at 718 million bushels. The reports negatively impacted wheat markets with nearby July wheat finishing down 15 cents on the day and 50 cents on the week.

Small Grains Prices

June 21, 2013

June 28, 2013

Change

Nearby Corn Futures

$6.61

$6.79

$0.18

Mississippi Corn*

$6.97

$7.02

$0.05

Nearby Soybeans Futures

$14.93

$15.64

$0.71

Mississippi Soybeans*

$15.01

$15.67

$0.66

Nearby Chicago Wheat Futures

$6.98

$6.48

-$0.50

Mississippi Wheat*

$6.69

$6.35

-$0.34

*Mississippi prices are average June 27, 2013 prices from Greeneville, Belzoni, Greenwood, and Indianola.

Cotton acres were reported at 10.251 million (10.025 for Upland and 0.226 for Pima). This compares to March’s Prospective Plantings acreage number of 10.026 million (9.820 for Upland and 0.206 for Pima). Still, nearby cotton continued to slide. The harvest time December contract moved mostly sideways during the week.

Cotton Prices (cents/pound)

June 21, 2013

June 28, 2013

Change

July Cotton Futures

85.15

82.71

-2.44

December Cotton Futures

84.64

83.80

-0.84

South Delta Cotton Quote*

82.68

82.61

-0.07

Note: Futures prices are from ICE and cash quote is from USDA, AMS

Crop Market Update: Week Ending Jun 21, 2013


Monday’s crop progress report had the U.S. corn crop rated at 63% good to excellent and the Mississippi corn crop at 55% good to excellent. It is interesting to note that at the same time last year, the U.S. corn crop was also rated at 63% good to excellent. Soybeans are still behind schedule with planting progress currently at 85% for the U.S. crop compared to a 5 year averages 90%. The Mississippi soybean crop looks rather good with 63% of the crop rated in good to excellent condition. July soybean futures closed down 4 cents on the day to finish off a tough week that saw a decline of 23 cents. July corn finished down 11 cents at $6.61 to close the week 6 cents higher. Wheat finished the week 18 cents higher, but closed the day 2 cents lower at $6.98. Wheat harvest is slowly progressing with 11% of the U.S. wheat crop harvested and 56% of the Mississippi crop harvested. That is compared to a 5-year average of 25% and 90%, respectively. The Mississippi wheat condition is better than that the U.S. wheat crop with 65% being rated good to excellent compared to 54% nationally. While most of the crops began the week strong, commodity prices took a hit across the board late in the week with talks of cutting back on the amount of bonds that the Federal Reserve is buying each month. It looks as concerns may be easing a bit with the stock market trading slightly higher late Friday afternoon. Continue reading “Crop Market Update: Week Ending Jun 21, 2013”

Cattle Market Notes: Week Ending Jun 21, 2013


Cash Cattle:
Cash cattle were lower this week but cash market trades were slim. The five-area price was at $121.37/cwt and $193.57/cwt respectively for live and dressed steers, down $2.84 and $0.74. To be certain this is not taken incorrectly, trades are taking place but recently there have not been enough through midday Friday to provide a definitive price point. Continue reading “Cattle Market Notes: Week Ending Jun 21, 2013”

June Cattle on Feed Report Recap


USDA released their monthly Cattle on Feed report this Friday afternoon (Jun 21). Placements of cattle into feedlots with 1,000 head or larger capacity totaled 2.049 million head, 1.7% lower than May 2012 but 8.3% above the five year average from 2008-2012. Analysts had expected placements to be slightly smaller  by approximately 50,000 head. Further, marketings during May were below expectations at 1.948 million head, 3.4% lower than last year and 1.3 percentage points lower than expected. Collectively, this means more cattle are in feedlots than was expected. The total number of cattle on feed registered 10.736 million head June 1, 2013, 3.1% below last year’s amount but 0.4 percentage points more than anticipated.

Breaking down the number of placements show that, for the most part, heavier cattle were sent into feedlots durring May.  Across the board placements of cattle under 700 pounds was down 21.6%, while placements of cattle 800 pounds and up were 19.6% higher. These heavy placements will likely pressure the August and October futures contracts more severely; however, all contracts could suffer when markets re-open.

Summary of the June Cattle on Feed report:

Pre-report Estimates:
(1,000 head) vs. 2012 vs. 5-Yr Avg Average Range
Placed in May 2,049 -1.7% 8.3% -4.1% -15.7% -0.2%
Marketed in May 1,948 -3.4% -2.4% -2.1% -3.0% 1.1%
On Feed, Jun 1 10,736 -3.1% 0.0% -3.5% -5.7% -2.4%

Placements by state and weight group:

AZ CA CO ID IA KS NE
< 600 lbs. N/A N/A -14.3% N/A N/A -38.9% -28.6%
600-699 lbs. N/A N/A -33.3% N/A N/A -22.2% -8.3%
700-799 lbs. N/A N/A 11.1% N/A N/A 0.0% 0.0%
800+ lbs. N/A N/A 0.0% N/A N/A 29.6% 12.5%
TOTAL -30.6% 10.0% -5.6% 41.4% 10.2% -3.4% 0.0%
OK SD TX WA Other [1] U.S.
< 600 lbs. N/A N/A -27.3% N/A -9.5% -25.0%
600-699 lbs. N/A N/A -16.0% N/A -10.0% -16.7%
700-799 lbs. N/A N/A 10.7% N/A 5.9% 4.7%
800+ lbs. N/A N/A 57.9% N/A 6.5% 19.6%
TOTAL -3.7% 11.4% -1.7% -7.0% -18.2% -1.7%
[1] Individual weight categories include states that are N/A

Livestock Price and Production Tables: Week Ending Jun 21, 2013


Market Summary
Mississippi Auction Markets
Weight Steers Heifers Slaughter Cows, Bulls, and Replacements
300-350 $170 $182 $130 $140 Boning (80-85% lean) $76 $82
350-400 $150 $170 $130 $140 Boning (high-yielding) $82 $85
400-450 $140 $155 $123 $145 Lean $65 $76
450-500 $140 $155 $123 $145 Bulls, YG 1-2, <1,500 lbs $89 $95
500-550 $133 $145 $120 $135 Bulls, YG 1-2, >1,500 lbs $90 $102
550-600 $133 $145 $120 $135
600-650 $130 $140 $115 $125 Sm/Mdm Cow-Calf Pairs $1,200 $1,600
650-700 $120 $130 $115 $125 Mdm/Lg Cow-Calf Pairs $850 $1,250
700-750 $118 $130 $100 $115 Sm/Mdm Replacements $1,000 $1,300
750-800 $118 $130 $100 $115 Mdm/Lg Replacements $800 $1,050
Volume1 (head): vs Last Week vs Last Year
under 600 lbs -0.6% -7.9%
over 600 lbs -0.2% 23.3%
Slaughter Cows 5.0% -31.2%
Rep. Females -2.8% -1.3%
Note: Steer and heifer prices are for medium and large frame, numbers 1-2.
1- Four Week Rolling Average
Source: USDA Agricultural Marketing Service

Continue reading “Livestock Price and Production Tables: Week Ending Jun 21, 2013”

Cattle Market Notes: Week Ending Jun 14, 2013


Cash Cattle:
Cash cattle were lower this week. In the Southern Plains live sales were at $120/cwt. In Nebraska and Iowa, dressed sales were at $195/cwt.

Feeder steers and heifers in Oklahoma City were $1-$3/cwt higher. In Mississippi auction markets feeder steers were mixed and feeder heifers were called steady. Cull bulls were steady and cows were $2/cwt lower. Continue reading “Cattle Market Notes: Week Ending Jun 14, 2013”