Morning Livestock Report, 11/25/2015

Wednesday, November 25, 2015


Cattle futures traded lower for most of the session yesterday, with the most active Feb contract down $1.70 by day’s end and giving up a majority of Monday’s rally. Monday afternoon’s Cold Storage report seemed to remind people that we still have an ongoing problem in the trimmings markets, even if we are expecting some modest strength in the holiday middle meats over these next few weeks. Freezer stocks are at record highs, as imports have been massive dating back more than a year now, and we’ve watched the 90% lean trim market trade from $2.90 three months ago to $2.08 yesterday, beef 50s have moved from $1.10 to $0.42, both of which are a drag on the whole complex. We saw some light volume cash cattle trade in NE/IA yesterday at $195 dressed, steady with last week’s market and a $124ish live equivalent. We’re still two weeks away from the December delivery period, but a $124 market there vs $130+ futures makes it look like the delivery math may well work for them again this go-around. No trade yet in the South where offers are $132+ vs a $127 trade last week.


Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial