Market Update & KY Weekly Cattle - September 17, 2012

Posted on Sep 17, 2012
  CBOT futures were slipping lower in the hours ahead of the CBOT pit opening, but collapsed on the open (930 am CT).  With the speculative funds very long the corn and soybean futures markets, they have a lot to sell (the last CFTC report showed them selling in the recent week of record).  So weaker prices encourage more selling and without strong buyers (end users), the futures price will fall hard. Soybean futures have traded as low as the 70-cent limit. Corn and wheat futures have not hit their daily 40-cent and 60-cent limits, respectively.

  While U.S. harvest pressure and weaker grain basis may be contributing to the weaker CBOT, the general “risk off” trade today is also hurting.  There seems to be less enthusiasm after the weekend for what the Federal Reserve’s new stimulus plan will do and there are signs that not all governments/people are on board with the ECB’s bailout plan. 

  Live Cattle futures are lower even as traders see possible strength in fed cattle prices and boxed beef.  “Risk off” trade is pressuring this market too.  Feeder Cattle benefit from the sharply lower feed prices.

  Lean Hog futures are trading lower as cash markets remain weak.

Corn Dec -29 753 (747.5-781); Mar -29 757; Dec’13 -16 644.5

Bean Nov -70 limit (1699-1736); Mar -68 1634; Nov’13 -47 1351  Meal -19 504   Oil -206 5491

Wheat Dec -33 891; Jly -26 867 (866-890)   KC -37 911;  MGE -34 944

LC Oct -120 12585; Feb -107 13185

FC Sep +35 14535; Oct +87 14750; Jan +70 15100

LH Oct -7 7395; Feb -65 7930

Milk Sep -1 1886; Oct -8 1989

Oats -12 384

Rice -1 1526

US$ +.1%

Dow -.3%

SP -.2%

NAS -.3%

Tran -1.3%

 VIX +.5%  14.58

WTI -.3%

Gas -1.5%

NG -2.7%

HO -1.2%

Eth -3.1%

Gold -.1%

Slvr -.5%

5-yr -.008 0.710% 10yr -.038 1.831% 30yr -.058 3.034%

Make plans to attend BEEF BASH 2012 Thursday, September 27       9:00 am CDT UK Research & Education Center      Princeton, Kentucky http://ces.ca.uky.edu/beefirm/bash/

 Kentucky Weekly Livestock Summary For September 7-September 14, 2012 Receipts  This Week   Last Week  Last Year  21,596     13,753      26,973 Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 39 percent and Heifers approximately 40 percent.  Steers and Heifers over 600 lbs totaled approximately 49 percent.  Replacement cattle 2 percent.

 Compared to last week:  Feeder Steers and Steer calves sold 2.00-5.00 higher with instances of 10.00 higher for calves less than 400 lbs. Feeder Heifers and Heifer calves 1.00 to 3.00 higher.  Demand good to very good with continued demand for light weight calves under 400 lbs.  Higher prices the last two weeks has prompted a higher quality offering in many yards which has also been supportive to higher trends.  Also worth noting, in recent weeks is the narrowing price spread of steer and bull calves of similar weight and quality (less than 600 lbs).  Slaughter cows and bulls sold 1.00-3.00 lower.

Tagged Post Topics Include: Economics, Market updates