Texas Daily Ag Market News Summary

Slaughter Cattle: Friday trading in Kansas has been limited on light demand. A few live cash trades moved at 127.00. However, not enough for a full market trend. In all other major feeding regions trading has been inactive on light demand. Not enough trades in any feeding region for a full market trend. Thursday was the last fully reported market in all major feeding regions. In the Southern Plain live cash trades were at 126.00. In Nebraska the bulk of live and dressed cash trades were at 127.00 and 204.00, respectively. In Colorado live cash trades were from 127.00-128.00. In the Western Cornbelt live trades have moved from 126.00 to 128.00 and dressed trades mostly at 204.00.

Negotiated Sales: Confirmed: 7,908   Week Ago: 5,487   Year Ago: 1,535

Formula Purchases: Net - Dressed 
Head count priced today: 14,500 
Weighted avg weight:       861.00 
Weighted avg net price:    201.20

Alberta Beef Producers Daily Report: Alberta direct cattle sales Thursday saw light trade develop with dressed sales marked at 276.00 delivered. Initial sales are steady to 6.00 lower than the previous week. Cash to futures basis levels did strengthen. Cattle that traded this week would be lifted anywhere from 1.00-3.00 weeks.

Livestock Slaughter under Federal Inspection: 
                             Cattle      Calves   Hogs        Sheep 
Friday  (est             112,000    2,000       458,000      7,000 
Week ago (est)      114,000     2,000       453,000      7,000 
Year ago (act)        106,000    2,000       431,000      6,000 
Week to date (est) 579,000   10,000    2,282,000    40,000 
Last Week (est)     583,000   10,000    2,287,000    38,000 
Last Year (act)       564,000     9,000    2,199,000    37,000

Saturday  (est          18,000        0           128,000       2,000 
Week ago (est)        25,000        0           130,000       2,000 
Year ago (act)         30,000         0           119,000         0 
Week to date (est) 597,000   10,000    2,410,000     42,000 
Last Week (est)     608,000    10,000    2,417,000     40,000 
Last Year* (act)     595,000      9,000    2,318,000     37,000 
2018 YTD           5,948,000  103,000  23,684,000   367,000 
2017 *YTD         5,811,000   101,000  23,115,000   364,000 
Percent change       2.4%         2.4%         2.5%          0.9%

Boxed Beef: Boxed beef cutout values firm on light to moderate demand and light offerings. Select and Choice rib, chuck, round, and loin cuts steady to firm. Beef trimmings unevenly steady on light demand and offerings.

Cutout Values...            Choice        Select 
Current Cutout Values:    224.14         217.26 
Change from prior day:     +0.26           +0.48 
Choice/Select spread:         6.88

Futures Summary: 

April Live Cattle Futures: 123.12...+1.35

June Live Cattle Futures: 114.30...+1.03

August Live Cattle Futures: 111.65...+0.40

March Feeder Cattle Futures: 142.52...+0.77

April Feeder Cattle Futures: 143.15...+0.15

May Feeder Cattle Futures: 144.65...+0.20

CME Feeder Cattle Index: 144.15...-0.57

April Lean Hog Futures: 67.85...-0.22

National Grain Market Summary: Compared to last week, cash bids for wheat and soybeans were mostly lower, while corn and sorghum were higher.  Weekly export sales were well above expectations with 73.1 million bu on corn and 92.2 million bu on soybeans as buyers extended coverage before any tariffs may be enacted. USDA lowered its estimate of U.S. ending stocks of corn from 2.352 billion bushels (bb) to 2.127 bb for 2017-18. The drop came from a 50 million bushel (mb) increase in the estimate of ethanol demand and a 175 mb increase 
in export demand.  USDA reduced its estimate of world ending soybean stocks from 98.1 million metric tons (mmt) to 94.4 mmt (3.5 bb), largely due to Argentina's soybean crop going from 54.0 mmt to 47.0 mmt (1.7 bb).  The slow start to the Brazilian soybean harvest also benefitted U.S. export sales.  Wheat was from 17 1/2 cents lower to 15 cents higher.  Corn was 1/4 to 9 3/4 cents higher.  Sorghum was 11 to 53 cents higher.  Soybeans were 3 1/2 to 12 cents lower.

Kansas City Corn: 3.72...-0.04

Kansas City Soybeans: 9.96...-0.25

Kansas City Wheat: 5.10...-0.13

March Corn Futures: 3.8300...-0.0275

March Soybean Futures: 10.2925...-0.2450

March Wheat Futures: 4.8900...-0.0575

Nearby Crude Oil Futures Contract: 62.04...+1.92

Dow Jones Industrial Average: 25,335.81...+440.60

NASDAQ: 7,560.81...+132.86

U.S. Dollar Index: 90.14...-0.02

National Feeder & Stocker Cattle Summary 
RECEIPTS:       Auctions     Direct    Video/Internet     Total 
This Week        249,300     68,500        22,000         339,800 
Last Week        227,800     44,200             300         272,300 
Last Year         256,300      61,500        12,700         330,500

Compared to last week, steers and heifers sold steady to 5.00 lower, with a few auctions quoting steady to 4.00 higher on their offering comprised of cattle that would be suitable for grazing this summer. In this commentary the past couple of weeks there has been mention of the demand for the high quality grazing kind of cattle. In the previous week, there were a couple stand out sales of the type of cattle we have been referring to. Last Friday at Burwell Livestock Auction in Burwell, NE, a load plus of 560 lbs one owner steers sold at 220.00. Last Saturday  
at Ericson Livestock Auction in Ericson, NE, near six loads of one iron steers weighing 557 to 564 lbs sold from 207.00-209.50 with a weighted average of 207.90. Replacement quality heifers are still in demand as well. On Monday at Tri-State Livestock Auction in McCook, NE, a combination of three different packages of replacement quality heifers weighing from 731 to 740 lbs sold from 155.00 to 156.00 posting a weighted average of 155.33.  On Thursday at Valentine Livestock Auction in Valentine, NE, a couple packages of heavy 6 weight heifers sold from 166.00 to 170.00 and posted a weighted average of 167.39. Just eight short weeks ago, the heavy 6-weight steers in Valentine averaged 167.89. That just goes to show you how demand for cattle has ramped up in a relatively short amount of time. 

Although some areas have received precipitation to squelch drought fears in the near term, the Oklahoma-Texas Panhandles as well as southwest and south-central Kansas are still in severe to extreme drought. With the windy and dry conditions in south-Central Kansas, authorities there have reported that about 40 square miles have burned; not nearly as devastating as the 1,000 square miles that was scorched in March 2017. Let's hope that this spring is not a rerun of last year on that front. 

Feedlot trade this week is mostly steady at 126.00 to 127.00 in the Southern and Northern Plains while dressed trade was also reported to be steady at 204.00. Packer margins are very good and the incentive should be there to pick up the slaughter pace and procure fed cattle. Beef demand has been excellent but remains a critical factor going forward as more market ready cattle become available for the April to June time period. These large numbers are also coming at a time when the grilling season and beef demand are historically at its best. However with the Nor'Easter that brought the Northeast to a standstill this week, the short term demand could add a bearish tone to the marketplace. Cattle futures seem to indicate that downside potential is more evident than upside potential, even with bullish fundamentals at this time. Feedlots keeping current, good domestic consumer beef demand, impressive January exports of 9 percent over a year ago and packer margins near triple digits can't seem to get a psychological foothold at this time. Auction volume this week included 57 percent weighing over 600 lbs and 44 percent heifers.