Markets mixed for a change western livestock journal exchange rate inr to usd


The markets were mixed last week as cash fed cattle prices and live cattle futures continued down, but beef prices and feeder markets moved higher.

“Violation of cash support at $105 establishes the $98-101 level as the next level of cash price support,” prophesized Andrew Gottschalk of Hedgers Edge at the beginning of last week.

His predictions seemed to come true by the time the bulk of the week’s trade got underway aud convert usd. By close of trade Thursday, over 52,000 head of fed cattle traded on the cash negotiated market at $102-105 (average $104.70) live and $164-166 (average $165.07) dressed.

“It’s been seven years since cash cattle prices have been this cheap in August, occurring last in 2010, the beginning stages of the bull market,” commented Cassie Fish of the Beef Report.

“Fed cattle prices, already trading this week in the $105-106 area, are $15 below the five-year average, $8 below the 10-year average, and even with the 20-year average.

The last time cattle traded at $105 or less was last November, as the market was coming up off its major low of $98 made in October 2016,” she continued.

“The problem is obviously not beef demand. Or unprofitable packers or retailers. The problem is muted demand for the current large supply of market-ready fed cattle. On a per-head basis, current supplies are the largest they’ve been since 2013 and for August, possibly 2011.”

Fish went on to note that some, in trying to place blame for the low cash fed cattle numbers, have pointed to “labor-related packing plant capacity limitations,” but dismissed this, pointing to packer margins currently running in the $70-100/head area.

“At some point, all experienced traders know that packers will find themselves needing to load up again on negotiated fed cattle buys that don’t come as easily and competition will kick in conversion of usd to rupees. It’s just not yet.”

Live cattle futures continue to struggle as their cash-market counterparts trade lower. Over the course of last week, the near-term contracts all shed some value. The August contract closed for good on Thursday at $104.52, down a net $1.43, almost all of that being lost in Thursday’s trade convert decimal to binary. The October contract lost a net $1.52 to settle Thursday at $105.40 while the December contract lost a net 82 cents to settle at $109.10.

“[The August contract] expired at the lowest level of any spot cattle contract since [the 2016 October contract]. Outside days have been posted all over the map, yet some contract months are trading higher, while others, basically [the October contract], look awful. Fall feeders don’t look all that bad while 2018 feeder contracts look potentially played out.”

The beef situation has brightened up into the shining point in the markets lately. Though relatively low cutout prices are not the most welcome to cattle feeders, they are very welcome to beef buyers.

“Sales of boxed beef soared as prices dropped—eager end users scooped up bargains and booked out-front,” reported Fish. “Both the short-term and the longterm forward sales increased dramatically with the long-term sales reaching a weekly volume seldom seen binary file viewer. No other proof is needed that beef demand, rekindled in Q4 2016, is still alive and well and will rush in to absorb larger production.”

The impacts of Hurricane Harvey might dull the shine of Labor Day weekend retail beef movement, however. Sales slipped over the weekend of Aug. 25-27 when the hurricane made landfall, and it may well continue.

There were a few upsides however, including the rebuilding process adding to economic growth. He also noted that “the Conference Board consumer confidence index in August rose to 122.9, the second highest since late 2000, up from a revised 120 in July.”

For the week of Aug.18- 24, 25,200 metric tons of net export sales were reported usd shop. This marketing-year high was up 52 percent compared to the prior week, and up 76 percent from the prior fourweek average. Reported purchase increases came from South Korea, Hong Kong, Egypt, Japan and Taiwan.

“I think export sales and the very strong pace of beef sales being shown in the weekly comprehensive beef reports show that beef is getting into a value area and that is going to go a long way in bottoming this market,” opined Vetterkind.

The cash feeder cattle market was mixed last week, though more up than down. Medium and large 1-class (#1) feeder steers weighing between 700-800 lbs. were widely available, but many sales did not report many groups being offered usd brl. Prices ranged from the $130s-160s. Many sales will not be occurring this week (reported in next week’s paper) due to the Labor Day holiday.

Kansas: The Winter Livestock Feeder Cattle Auction of Dodge City sold slightly more cattle last week than the week before. There was a limited supply of feeders, so no comparisons were offered usd rupee exchange rate. However, yearlings were described as steady to firm, and calves were said to have a lower undertone. Several packages of benchmark steers ranged from $139.50 for a group of calves, to $160.25 for a group of “fancy” yearlings.

Missouri: Over 4,200 head sold last week at the Joplin Regional Stockyards with feeders trading steady to up. Yearling steers were up $2-5 while calves were called steady can to usd. Heifer calves were also steady, while yearlings were steady to up $3. Number 1, 7-weight steers ranged from $141-153, in clusive of calves.

Montana: The Miles City Livestock Commission held its first sale in a couple weeks, meaning there were few applicable trends to offer, though higher undertones were noted 1 usd to sek. Many of the heifer offerings were being purchased as replacements rather than feeders. Prices on benchmark yearling steers ranged from $153-159, the highest range seen in the surveyed auctions.

Nebraska: The Sheridan Livestock Auction Co. sold less than half the volume of cattle last week as it did the week before, making trends impossible. Nine head of 773-lb. #1 yearling steers averaged $150.50.

New Mexico: More cattle sold last week at the Clovis Livestock Auction than did the week before. Feeder steers under 600 lbs. were called steady, while heavier steers were up $5-7 2000 usd to inr. Light heifers were up $8, while heavier heifers were called steady to weak. A half load of benchmark yearlings averaged $145.77 while a nine-head group of benchmark calves averaged $136.05.

Oklahoma: The Oklahoma National Stockyards sold 5,650 head last week with feeders of all ages and sexes selling up. Yearlings sold up $2-5 while heavier calves sold up $4-7. Demand was called good. Two large groups of benchmark yearling steers averaged $152.24 for the light (721 lbs.) group and $147.09 for the heavy (765 lbs.) group.

Wyoming: The Torrington Livestock Commission Co. has not held many sales lately, making trends for last week’s sale impossible. Despite that, the sale was called active on the heavy feeder offering. A 51-head group of #1, 777-lb. yearling steers averaged $153.42.

Unlike live cattle futures, the near-term feeder cattle futures mostly saw gains. The August contract left the board at $142.72, a net gain of $1.35 over the course of last week, meaning most of last week’s cash trade was at a premium to the futures.

The September contract lost a net 35 cents over the course of the week with a settle of $142.57. The October contract gained a net 35 cents on the other hand, settling last Thursday at $143.30. — Kerry Halladay, WLJ editor

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