By Cassie Fish, http://cassandrafish.com
As of this morning, 3.7k head of cattle have traded with a $130 live and $204 dressed top, with most of the trade occurring in Iowa. It’s a quiet start to the week. A few $204 dressed bids have surfaced this morning.
Futures aren’t too exciting today, trading both sides of steady as open interest migrates from December LC to February LC. As of yesterday’s close, February LC is the most actively traded live cattle futures contract. Though it’s the middle of the Goldman roll, the December has been able to gain on the February this week, considered a positive sign.
This morning’s modestly friendly-to-corn WASDE report is pressuring feeder cattle futures. The USDA lowered its U.S. corn ending stocks estimate and increased ethanol usage.
Boxed beef values are holding their own, but the rib is showing a bit of a sign of fatigue though it’s way too soon to say the seasonal high has been established. As of last night’s print, the rib was barely higher than last Monday and down $12 from last week’s high. The improvement in boxed beef prices contributed to last week’s weekly beef packer margin expanding a bit, still over $700 per head net, a record.
The average number of choice + prime quality grade carcasses most recently reported by the USDA slipped to a new low for 2021, though it remains the second highest in history for that date.
Copyright © 2021 the Beef Read. All rights reserved
The Beef is published by Consolidated Beef Producers
Use of part or all of this blog for any reason without permission is strictly prohibited.
Disclaimer: The Beef, CBP, Cassie Fish nor NFC Frontier Capital Markets shall not be liable for decisions or actions taken based on the data/information/opinions.
This material has been prepared by a sales or trading employee or agent of New Frontier Capital Markets and is, or is in the nature of, a solicitation. This material is not a research report prepared by New Frontier Capital Markets. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that New Frontier Capital Markets believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.