live cattle futures

live cattle futures

April 16th, 2018

While winter lingers in the upper Midwest, ranchers in the U.S. central plains are dealing with relentless drought, forcing some ranchers to send livestock to feedlots earlier. We’ll see this Friday how many more head are at feed yards when USDA releases the monthly Cattle on Feed report.

Cattle futures have been sliding as market watchers expect a landslide of meat in the coming months. Severe drought is parching the U.S. Plains, and ranchers have had no choice but to send their animals to yards where they’re fattened up for market with grains. That speeds up the growing process and means the animals will go to market earlier than usual.

“It’s a shockingly weak market,” said Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago. Traders can expect “a bulge in production that’s going to happen in the second and third quarter,” he said.

Extreme and exceptional drought has spread across Texas, Oklahoma, Kansas and Colorado, according to the U.S. Drought Monitor in Lincoln, Nebraska. It’s been that way for around six months, and doesn’t show signs of improving.

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cattle futures news

cattle futures news

November 14th, 2016

Shares in the Australian agricultural services group Elders Limited rallied, as the company reported rising profits thanks to booming cattle prices and strong demand for farmland.

Elders reported profits up 35% in the year to September, at $51.6m, with revenues up 9% to $1.64bn.

“High cattle prices have driven higher livestock earnings and also real estate sales demand for large cattle farming properties”, said Elders chief executive Mark Allison.

Cattle prices in Australia have been supported by herd rebuilding, as farmers hold back cattle to increase herd numbers, after high slaughter driven by years of drought.

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live cattle futures

live cattle futures

June 21st, 2016

Chicago cattle prices bounced up from multi-year lows, on technical support, but the market remains under pressure thanks to ample beef supply, and sluggish US demand.

Prices for both live cattle, which are ready for slaughter, and feeder cattle, which are ready for fattening up on feedlots, are under pressure.

Live cattle prices hit a four-year low of 113.725 cents a pound on Monday, while feeder cattle hit a three-year low 134.250 cents a pound.

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Indianapolis

Indianapolis

May 22, 2016

Dinner prices at St. Elmo Steak House may get cheaper. The number of cattle placed into U.S. feedlots in April jumped 7.0 percent from a year earlier, according to a government report on Friday, far exceeding most analysts’ forecasts.

Feedlots were still operating at a loss, analysts said. But lower prices for young calves allowed feedlots to buy more of them for fattening, which helped shore up sagging bottom lines.

USDA’s data showed the number of heavier cattle placed in April rose almost 12 percent from the year-ago month. Analysts said this could pressure prices for slaughter-ready animals in the fourth quarter.

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live cattle futures

live cattle futures

September 21st, 2015

Cattle futures were expected to start the trading week buoyed by short-covering, as investors reel in bets on a steeper drop after a decline to the lowest prices in 1 1/2-years last week.

A tighter-than-expected supply of feeder-cattle reported in the nation’s feedyards is also expected to support futures.

The cattle market last week was weighed down by worries that the steep cost of steaks and roasts will deter grocery store and restaurant buyers from loading up on seasonal meat items as they normally do during this time of year, and will instead opt for cheaper proteins such as pork and poultry.

After futures notched the lowest close since May 2014 last week, some traders may scale back bearish bets Monday while awaiting fresh signs of demand.

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Feeder Cattle Futures

Feeder Cattle Futures

June 5th, 2015

Australia’s beef producers will start to rebuild their herds, despite the threat of El Nino-induced dryness, thanks to a trend of rising cattle prices which looks set to continue, National Australia Bank said.

Australian cattle prices have, unusually, jumped over the past year despite dryness worries in some eastern areas – typically a negative sign for prices in cutting pasture condition and encouraging herd reduction.

The increase in prices – which as measured by the eastern young cattle indicator hit a record 489.5 Australian dollar cents per kilogramme last month – has been attributed largely to strong import demand from the US, where a recovery in southern pasture conditions from long-term drought is encouraging producers to rebuild herds rather than sell animals into the beef supply chain.

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Feeder Cattle Futures

Feeder Cattle Futures

July 30th, 2014

Beef costs are poised to rise further as feeder-cattle futures climbed to cap the longest rally in 37 years amid mounting U.S. supply concerns.

Cattle inventories as of July 1 fell to the lowest for the date since records began in 1973, the U.S. Department of Agriculture data said last week. Gains in consumer spending helped the economy rebound more than forecast in the second quarter, according to government figures today. Retail ground beef and boneless sirloin-steak costs rose to all-time highs in June, Bureau of Labor Statistics data show.

“We’ve never had cattle supplies this tight before with this kind of beef demand,” Troy Vetterkind, the owner of Vetterkind Cattle Brokerage in Thorp, Wisconsin, said in a telephone interview. “At some point in time, we’re going to cool things off, but it doesn’t appear to be this week. It’s a historic thing that we’ll probably never see ever again.”

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Cattle Rise to Six-Month High

On September 23, 2013, in cattle futures trading news report, by Infinity Trading
feeder cattle options

cattle futures

September 23rd, 2013

Cattle futures rose to a six-month high and feeder cattle climbed to a record after a report showed feedlots added the fewest animals to herds for the month of August since the current method of tracking the data began in 1996.

So-called placements tumbled 11 percent to 1.788 million head of cattle from a year earlier, U.S. Department of Agriculture figures showed after the close of regular trading on Sept. 20. The number of animals added to the feedlot herd also fell in May, June and July.

The report “suggests we’re going to have very tight supply of fed cattle this year and in early 2014,” Dan Vaught, an economist at Doane Advisory Services in St. Louis, said in a telephone interview.

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cattle options

live cattle futures

August 26th, 2013

Cattle prices advanced the most in almost two weeks on speculation that U.S. beef supplies will shrink as feedlots add fewer animals. Hog futures rose.

About 10 percent fewer cattle were added to feedlots last month compared to July 2012, government data showed on Aug. 23, after the close of regular trading. Corn prices climbed as much as 5.7 percent on the Chicago Board of Trade as a heat wave in the Midwest threatens crop yields. Animals use more energy to stay cool during higher temperatures, curbing weight gains.

“The cattle-on-feed report was positive,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “The grain moving higher should be supportive. The other issue is the intense heat typically cuts weights.”

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July 26th, 2013

Cattle futures gained the most in a week on speculation that mild U.S. weather will lead to higher beef demand as more Americans grill outdoors. Hog prices fell.

Wholesale beef rose 0.4 percent to $1.8766, the biggest increase in four weeks, U.S. Department of Agriculture data show. Most of the Midwest will have below normal temperatures in the next six to 10 days after a recent heat wave, according to MDA Weather Services. Hot weather can slow grilling demand as fewer consumers cook outdoors.

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