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Cattle News The Cattle Report (May 6, 2008 07:50 am) Live cattle futures started the week in decline. Fund selling and pre-Goldman roll activity sent futures prices lower. Feeder cattle remained steady as corn futures tumbled. Two weeks of slaughter numbers of 700,000 head are some indication demand for beef is good in spite of problems with the economy and frustrations of many consumers with high food costs. Plentiful supplies should be available for slaughter for the next two to three months and positive packer margins should sustain the high slaughter rate. Cattle owners shook off lower futures prices and ask $95 for most offerings. Show lists were steady with last week with some lighter offerings in the south. Sales volumes last week fell and packers will need to increase purchases in order to satisfy the new level of slaughter. Choice box prices firmed a dollar in early week trading. Choice cuts inched up at $155 and select at $152. Positive packer margins of $50-75/head will keep kill numbers up. Retailers express more confidence by forward purchasing more beef cuts. Feeder cattle prices were mixed across the country. Lower live cattle futures were offset by sharply lower corn futures. Supplies of May feeder cattle will be light and the spot May board is expected to decline to the current cash price of around $102 basis a 750# steer in the south. Prospect of rain in the southern plains is encouraging some interest in light weight calves. Corn futures dropped almost 20 cents in early week trading. Corn plantings are 27% complete vs. 10% last week and most areas are busy in the field. Much of the northern plains remains wet and some areas the temperature is cold. Normal planting would be at 50% for this time of year. A decline in cattle on feed, pork and poultry production will trim corn usage. Current quotes on the southern plains are 50 over the July contract. Corn is now pricing into most rations at $12 cwt.. Click here for current cattle & feed financing rates. |
