Morning Livestock Report, 12/14/2015

Monday, December 14, 2015

As if the cattle markets didn’t have enough on their plate already, we’ve definitely got a full agenda on tap this week. The weekend featured another weather event across a swath of western and central KS, NE, and into IA this morning. This is our fourth event in the past month, but will it matter?? The first three barely seemed to support the markets for more than a blip, as the industry instead battles growing supplies, a weak macro-commodity environment, uncertain exports due to COOL issues, and a retail demand base that isn’t yet seeing lower prices. On the COOL front, the U.S. has until Thursday to repeal or alter our labeling laws before Canada and Mexico can initiate retaliatory tariffs. Most expect Congress to attach changes onto the spending bill due this Wednesday. Then we’ll have the USDA’s COF report out Friday where we’ll be expecting Dec 1 on feed to be up 1-2% vs last year, Nov placements down 4-5%, and Nov marketings up 3-4%. Yes, marketings should be above year ago levels for the first time in 23 months.

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