Some highlights from this week’s Weekly Livestock Market Update:
•Live cattle were down $1.50 on the week on minimal trade. Feeder cattle $1 to $5 higher on light trade this due to many sale barns closed because of the Labor Day Holiday. Demand seemed strong as many look to graze on early wheat pasture as well as good pasture conditions in many parts of the country. On the futures side, both live and feeder cattle traded positively this week. Live cattle were up roughly $3.00 for the week, while feeder cattle futures were up $5.00 for the week. Boxed beef prices were $.85 higher for the week, loins, rounds, and chucks were all higher for the week. Choice-Select spread is at $2.06 for the week. Cash hogs are down nearly $3.00 for the week driven primarily by seasonal downward trend in the market, while futures prices were basically flat. Pork cutout was down $.83 for the week. Belly prices dropped another $7.00 for the week, but belly prices are still 45% higher than they were a year ago.
•Farrow to finish returns were released this week. Producers earned $27.54 per pig in August. That’s the third most profitable months since June of 2016.
•Monthly trade data was released this week. July Exports for beef in terms of volume were up 5%, in terms of value exports were up 18% from a year ago. However beef imports (primarily from Mexico and Canada) were significantly for July, offsetting the increase in exports. On the pork side – the percentage of pork exported has grown from 25% to 27.5% in the first seven months of this year.
•There’s no doubt that 2016 was a strong year for exports. As we get into 2017, domestic production has increased significantly, but trade has not grown at the same pace.
•Per capita availability of meat (beef, pork, and chicken) increased and at the same time the price that the consumer paid has also increased. 2017 has been a phenomenal year for domestic demand. Brown says that doesn’t happen very often (this has only happened 4 times since 1981).
•How do farmers protect themselves and mitigate some of that risk.
•Next week the latest WASDE report comes out, retail prices, and consumer confidence. •Subscribe to BrownfieldTV on YouTube for John Perkins’ daily opening and closing #MarketMinute reports.