Weekly Livestock Market Update with Scott Brown, May 21st 2018

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Some highlights from this week’s Weekly Livestock Market Update: •This week in markets – Cash cattle is down $6.00 this week and feeder cattle are down $1.00 to $8.00. Current live cattle futures are down $4.50 for the week, while the current feeder cattle contract closed $5.50 lower. Brown says while the range between cash and futures has narrowed, it isn’t exactly the route producers had hoped to see. The Choice box beef price was $1.25 higher this week, driven by stronger rib and loin prices, but is still 6.8 percent below year-ago-levels as the season run-up has been muted relative to 2017. Cash hogs up $3.75 for the week and the current lean hog futures contract is down $1.00 for the week. Pork cutout value is up $2.25 this week, driven by stronger belly prices. While the cutout value has improved, it still trails 2017 levels by more than 13 percent. •WASDE’s first outlook for the 2018-19 crop year – USDA has corn prices $.50 higher and soybean meal prices $25/ton higher than its long-term baseline, which they released earlier this year. Brown says feed costs are moving higher. However, when you look at their red meat and poultry production forecast for 2019, they’re calling for another 2.3 to 2.4 percent increase in total meat production. Those two figures combined, suggests livestock producers are facing tougher economic times. •What about margins – Brown talks about where margins have been and where they could be headed. •Farm Bill – The House failed to pass its version of the Farm Bill. •Next week’s reports – Cold Storage, Cattle of Feed, Livestock slaughter •Subscribe to BrownfieldTV on YouTube for John Perkins’ daily opening and closing #MarketMinute reports.

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