Texas Daily Ag Market News Summary

Slaughter Cattle: Friday, negotiated cash trade was light on light to moderate demand in all feeding regions. In Nebraska compared to Thursday, dressed purchases traded steady at 205.00. On Thursday live purchases in Nebraska traded from 128.00-129.00. In Colorado compared to Thursday, live purchases traded steady to .50 higher at 128.50. Compared to Tuesday in the Southern Plains, a few live purchases traded steady at 127.00. The latest established market in the Western Cornbelt was on Thursday, with live and dressed purchases from 128.00-131.00 and from 205.00-207.00 respectively.

Negotiated Sales: Confirmed: 13,345   Week Ago: 7,908   Year Ago: 7,162

Formula Purchases: Net - Dressed 
Head count priced today: 14,200 
Weighted avg weight:       848.00 
Weighted avg net price:   200.90

Alberta Beef Producers Daily Report: Alberta direct cattle sales Thursday saw light trade develop with dressed sales marked at 276.00 delivered. Sales are steady with prices seen on Wednesday and are steady to 2.00 lower than the previous week. US buying interest was noted yesterday, depending on freight and dressing percentage US bids were working back to the low to mid 160's on a live basis. US bids were comparable with local sales in other words there was very little price incentive to market cattle into the US.

Livestock Slaughter under Federal Inspection: 
                              Cattle      Calves   Hogs        Sheep 
Friday   (est           107,000    2,000       450,000        7,000 
Week ago (est)     112,000    2,000        458,000       7,000 
Year ago (act)      101,000     3,000       428,000        7,000 
Week to date(est) 573,000   10,000    2,295,000      38,000 
Last Week (est)    579,000   10,000    2,282,000      40,000 
Last Year (act)      557,000   10,000    2,187,000      40,000

Saturday  (est         22,000        0            118,000       2,000 
Week ago (est)       18,000        0            121,000       2,000 
Year ago (act)         31,000        0            145,000       1,000 
Week to date (est) 595,000    10,000    2,413,000     40,000 
Last Week (est)     597,000    10,000    2,403,000     42,000 
Last Year* (act)     589,000      9,000    2,332,000     40,000 
2018 YTD           6,546,000  113,000  26,091,000   406,000 
2017 *YTD          6,400,000  110,000  25,447,000   403,000 
Percent change        2.3%        2.9%         2.5%          0.6% 
 

Boxed Beef: Boxed beef cutout values firm on moderate demand and light offerings. Select and Choice rib and round cuts steady while chuck cuts steady to weak. Choice loin cuts higher while Select steady. Beef trimmings weak to slightly lower on light demand and offerings. 

Cutout Values...            Choice        Select 
Current Cutout Values:    225.59         216.86 
Change from prior day:      +0.60          +0.55 
Choice/Select spread:         8.73

Futures Summary: Live cattle futures settled with 15 to 70 cent losses in most contracts on Friday. Feeder cattle futures were down 10 to 65 cents. The CME feeder cattle index was down 10 cents on March 15 at $142.71. Wholesale boxed beef values were higher on Friday afternoon. Choice boxes were up 60 cents at $225.59, with Select boxes 55 cents higher at $216.86. Estimated week to date FI cattle slaughter is 595,000 head through Saturday, 2,000 below last week but 6,000 head above the same week in 2017. Cash sales of $128-129 were reported on Thursday. Managed money backed off their net long position in live cattle futures and options by 7,836 contracts to 84,720 contracts as of Tuesday.

April Live Cattle Futures: 121.25...-0.60

June Live Cattle Futures: 111.75...-0.55

August Live Cattle Futures: 109.12...-0.68

March Feeder Cattle Futures: 139.97...-0.65

April Feeder Cattle Futures: 140.20...-0.62

May Feeder Cattle Futures: 140.95...-0.65

CME Feeder Cattle Index: 142.71...-0.10

April Lean Hog Futures: 65.45...-0.27

National Grain Market Summary: Compared to last week, cash bids for wheat, sorghum, soybeans, and corn were lower.  The vast majority of market interest when it comes to weather and crop loss right now has been on Argentine soybeans, but just as much should be on the country’s corn crop. In the majority of years that Argentina has a drought the loss of production in corn is actually greater than in soybeans.  Also, Brazilian corn production this year is just as uncertain as Argentina’s.  While we are in no danger of depleting the world corn supply at this time, trade is well aware that the global corn supply has already decreased a considerable amount in just one year.  Last week's corn shipments came in at 55.4 million bushels and put total shipments down 27% from a year ago, a neutral-to-bearish pace overall. 

The U.S.D.A. bumped ethanold emand by 50 million bu in its latest balance sheet update. There are thoughts the resulting distiller grains will off-set enough corn demand to raise corn carryout in future supply and demand reports.  Early Thursday, USDA said last week's export sales and shipments of soybeans totaled 46.6 million and 33.1 million bushels, respectively, another bearish combination that has total soybean shipments down 12% in 2017-18 from a year ago.  Early Thursday, USDA said last week's export sales and shipments of wheat totaled 6.0 million and 12.3 million bushels, respectively, another bearish combination that has total wheat shipments down 8% in 2017-18 from a year ago.  Wheat was 10 to 71 cents lower.  Corn was 4 3/4 to 9 cents lower.  Sorghum was 12 to 13 cents lower.  Soybeans were 19 1/4 to 23 1/4 cents lower.

Kansas City Corn: 3.65...-0.04

Kansas City Soybeans: 10.07...+0.09

Kansas City Wheat: 4.90...-0.14

May Corn Futures: 3.8275...-0.0400

May Soybean Futures: 10.4950...+0.0875

May Wheat Futures: 4.6775...-0.1100

Nearby Crude Oil Futures Contract: 62.34...+1.15

Dow Jones Industrial Average: 24,946.37...+72.72

NASDAQ: 7,481.99...+0.25

U.S. Dollar Index: 90.21...+0.08

National Feeder & Stocker Cattle Summary 
RECEIPTS:       Auctions     Direct    Video/Internet    Total 
This Week        265,100     44,600         1,600          311,300 
This Week        249,300     68,500        22,000         339,800 
Last Year          228,600     80,100        25,900         334,600

Compared to last week, steers and heifers sold steady to 4.00 lower.  Demand continues for turnout cattle with 4-weight steers commonly above 200.00 in the Midwest.  Feedlots continue to procure needs to fill pens when needed and stockyards continue to have the receipts at their regular auctions.  Auction receipts nationwide typically drop around the first of April and this year is shaping up to follow that trend.  Year to Date auction receipts for this report are around 125,000 head behind a year ago, however those totals are 205,000 ahead of the five year average. 

As the Southern Plains goes through another difficult time with drought conditions, calves being grazed this winter are not as abundant as they typically are in that area.  On Tuesday, the Governor of Kansas declared all 105 counties in the state in a drought.  The latest U.S. Drought Monitor released March 15 shows 66 counties in Kansas are at D2 (Severe) or D3 (Extreme) drought levels, where 56.19% of the state’s land falls into this designation.  Four counties along the Oklahoma border have the worst classification D4 (Exceptional) drought.  Since the first of the year in Amarillo, the National Weather Service has only recorded one day of precipitation; a whopping one one-hundredth of an inch of rain fell on Feb. 17 that broke a dry streak that lasted 126 days. 

Some pretty handsome prices were paid for steers this week in the Northern Plains.  Last Saturday at Ericson/Spalding Livestock Market in Ericson, NE, one large consignment of reputation one brand cattle were on offer for anyone to bid on.  When the hammer dropped on two and a half loads of 775 lb steers at 162.50 and six straight loads of 860 lb steers from the same patron sold at 157.00.  On Monday at Tri-State Livestock Auction in McCook, NE a load of 757 lbs steers sold at 160.00.  On Wednesday at Torrington Livestock in Torrington, WY, a half load of 656 lb steers sold at 186.00.  On Thursday at Ogallala Livestock in Ogallala, NE a short load of 608 lb steers brought 197.00, while a load plus of bigger brothers weighing 666 lbs sold at 186.00.  In addition at that location a load of 808 lbs steers sold at 154.25. 

The CME cattle complex has seen a better week, however the last few has been nothing but a roller coaster.  The front four months on Live Cattle closed 1.87 to 2.55 lower on the week, while the front five Feeder Cattle contracts were 2.95 to 3.70 lower on the week as bears took over after an early week fed cattle trade that was at higher levels and took some market watchers by surprise.  Feedlot trade occurred on Tuesday in the Southern Plains at 127.00, 1.00 higher than a week ago.  In Nebraska and the Western Corn Belt, live prices ranged from 128.00 to 131.00 while dressed sales traded at mostly 205.00-207.00.  As fed cattle stay in this trading range, packers continue to move boxed beef at the higher levels.  The Choice cutout closed today at 225.59, up 1.45 from last Friday and at the highest level since June 30, 2017.  The Select cutout closed at 216.86 down 0.40 from last Friday.  Auction volume this week included 63 percent weighing over 600 lbs and 42 percent heifers.