Texas Daily Ag Market News Summary

Slaughter Cattle:  Friday negotiated cash trade was light on light to moderate demand in Kansas, Nebraska and the Western Cornbelt. In Kansas, a few live purchases have traded at 117.00. In Nebraska, a few live purchases have traded mostly at 118.00. Trade was mostly inactive on light demand in the Texas Panhandle and Colorado. Not enough sales in any feeding region for an adequate market test. The latest established dressed market in Nebraska was on Wednesday with purchases ranging from 184.00-188.00. On Tuesday in Kansas, live purchases traded from 117.00-118.00, bulk at 118.00. In the Texas Panhandle on Tuesday, live purchases traded from 117.00-118.00. In the Western Cornbelt on Tuesday, early dressed purchases traded from 188.00-192.00, bulk at 188.00. Last week, live purchases traded mostly from 120.00-122.00. In Colorado, trade was inactive on light demand on Thursday, with the latest established market last week at 120.50.

Negotiated Sales: Confirmed: 9,373   Week Ago: 4,839   Year Ago: 5,551 
 

Formula Purchases: Net - Dressed 
Head count priced today: 15,800 
Weighted avg weight:       856.00 
Weighted avg net price:   194.84

Alberta Beef Producers Daily Report: Alberta direct cattle sales Thursday saw light trade develop with dressed bids and sales steady to a couple dollars higher than Wednesday. Dressed bids of 260.00 were being passed yesterday as producers were looking for more money. US buying interest has been noted, depending on freight and dressing percentage US bids were working back to the mid 150's on a live basis. There is little to no price advantage to market the cattle south. The way things are shaping up some cattle will be carried over into next week.

Livestock Slaughter under Federal Inspection: 
                              Cattle      Calves   Hogs        Sheep 
Friday  (est            114,000    2,000       455,000       6,000 
Week ago (est)     106,000     2,000       429,000       5,000 
Year ago (act)       101,000     2,000       441,000       8,000 
Week to date(est) 571,000   10,000    2,167,000     35,000 
Last Week (est)    578,000   10,000    2,274,000     38,000 
Last Year (act)      551,000     9,000    2,227,000     42,000

Saturday  (est         44,000        0            168,000      1,000 
Week ago (est)       16,000        0            117,000         0 
Year ago (act)         27,000        0              91,000      2,000 
Week to date (est) 615,000    10,000    2,335,000    36,000 
Last Week (est)     594,000    10,000    2,391,000    38,000 
Last Year* (act)     578,000    10,000    2,318,000    45,000 
2018 YTD           8,374,000  143,000  33,240,000   524,000 
2017 *YTD         8,192,000  139,000  32,432,000   530,000 
Percent change      2.2%          2.5%        2.5%         -1.1%

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

Cutout Values...            Choice        Select 
Current Cutout Values:    214.31         205.60 
Change from prior day:       -0.78          -0.71 
Choice/Select spread:         8.71

Futures Summary: 

April Live Cattle Futures: 112.22...-2.08

June Live Cattle Futures: 102.32...-2.73

August Live Cattle Futures: 102.77...-2.10

April Feeder Cattle Futures: 135.32...-2.15

May Feeder Cattle Futures: 135.62...-2.43

Aug Feeder Cattle Futures: 141.45...-1.22

CME Feeder Cattle Index: 135.41...+0.10

May Lean Hog Futures: 64.47...-1.48

National Grain Market Summary:  Compared to last week, cash bids for wheat were mixed, corn and sorghum were higher, soybeans traded lower.  Markets were heavily influenced by world politics this week.  Soybeans took a substantial loss early in the week after China announced it would be placing tariffs on US goods being imported.  Markets were able to recover most of their losses yesterday only to be hit once again by additional tariffs threats against China overnight by US.  May Kansas City wheat was able to shrug off this bearish news and closed 12 1/2 cents higher yesterday, influenced by drought concerns in the southwest plains.  USDA said last week's export sales and shipments of corn totaled 35.4 million and 49.8 million bushels respectively, a neutral-to-bearish combination.  Last week's export sales and shipments of soybeans totaled 41.6 million and 21.3 million bushels respectively, another bearish combination.  Last week's export sales and shipments of wheat totaled 4 million and 15.7 million bushels respectively, yet again another bearish total.  Wheat was mixed from 8 3/4 cents lower to 31 1/4 cent higher.   Corn was from 1 3/4 cents lower to 17 cents higher. Sorghum was 3 to 4 cents higher.  Soybeans were 3 1/2 to 5 1/2 cents higher.

Kansas City Corn: 3.75...-0.01

Kansas City Soybeans: 10.00...+0.03

Kansas City Wheat: 4.97...+0.08

May Corn Futures: 3.8850...-0.0100

May Soybean Futures: 10.3375...+0.0250

May Wheat Futures: 4.7225...+0.0750

Nearby Crude Oil Futures Contract: 62.06...-1.48

Dow Jones Industrial Average: 23,932.76...-572.46

NASDAQ: 6,915.11...-161.44

U.S. Dollar Index: 90.10...-0.35

National Feeder & Stocker Cattle Summary 
RECEIPTS:    Auctions     Direct    Video/Internet     Total 
This Week      131,900     31,500      33,300           196,700 
Last Week      164,900     37,000           0               201,900 
Last Year        209,400     50,800      5,400             265,600

Compared to last week, early week sales of calves and yearlings in a light test traded unevenly steady to 5.00 lower, with instances 10.00 lower.  Early week sales saw the most declines but Wednesday’s and Thursday’s sharp gains in the CME cattle futures help to stabilize most markets with several auctions reporting steady to 5.00 higher trends, as this week’s sales were a tale of two markets.  Receipts were light this week coming back from Easter Holiday, a strong cold front through the Southern and Northern Plains along with fears of lower market uncertainties all hampered receipts this week; especially at some of your larger markets as Oklahoma City, El Reno and Joplin all had very light receipts.  

The coming weeks will be made up of new crop fall born calves which are not always in high demand by feeder buyers as many are unweaned and carrying flesh.  Never the less, most top quality 5 weight and 6 weight steers suitable for grass that are longtime weaned with good weighing conditions are still in good demand.  Some handsome prices were reported this week for all the uncertainty that markets have seen this week; mostly in the Northern Plains with Bassett, NE on Wednesday selling 175 head of steers weighing 601 lbs at 184.75 and near 230 head of 800-850 lb steers averaging 819 lbs sold for a weighted average price of 145.36.  Yearling market in Kearney, NE on Wednesday was also good with two loads of steers weighing 761 lbs selling for 148.10 and in Creston, IA on Wednesday saw a load of 664lb steers sell for 163.50.  

Packers came out on Tuesday and bought fed cattle lower picking them up from mostly 117.00-118.00, with sales in the Northern Plains on Wednesday and Thursday at 114.00-114.50.  This week has been a very volatile for the markets as Stock Market started the week with large losses before finding footing at mid-week.  The tariff showdown between U.S. and China has uncertainties with a possible intense negotiating period ushering in a high stakes standoff.  One thing markets loathe is uncertainty.  Feeder cattle are caught in a bottleneck of lower fed cattle prices, increasing supplies of fed cattle, sharply lower cattle futures and record supplies of competing meats as the entire livestock complex struggles with these issues, demand and exports are very important to keep product moving and prices stable.  

Until the fed cattle market finds a bottom and live cattle futures find support hoping to see higher fed cattle market down the road and fund selling stops feeder cattle prices will continue to be volatile until in most cases they align with profitable returns on fed cattle.  This keeps the cattle markets and futures very vulnerable and very fluid in moving fast in one direction or the other; caution certainly remains in the air.  Choice boxed-beef closed .78 cents lower on Friday at 214.31 with Select .71 cents lower at 205.60 compared to last Friday’s close with Choice at 221.04 and Select at 208.69.  Auction volume this week included 49 percent weighing over 600 lbs and 47 percent heifers.