CattleFax Discusses Markets & On Feed Report


While our markets were far from optimum (September feeder cattle -$2.20, December Kansas City winter wheat -$0.27 ½) during the day trade on Thursday, we did dramatically better than the Dow Jones Industrial Average’s a dramatic 419 point drop.  Gold continued to march higher, ending well over $1,800 an ounce.

As we continue to feel out how the stock market fluctuation is affecting our commodities, we spoke with Kevin Good, a Senior Market Analyst with CattleFax.  The full interview between Kevin and Haylie Shipp can be played at the bottom of the story.  Here are some highlights of what he had to offer:

  • We need to recognize that there is extreme volatility in all markets right now.
  • Consumer confidence/sentiment is running at the lowest level in a couple of decades.
  • We are still in a very good position, especially for the cow/calf industry in the northern plains.
  • We have the tightest per capita beef supply that we’ve had in over 50 years.
  • The calf market is going to stay strong.
  • The USDA reports that retail food prices are between 7 and 10{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher than they were in July of last year.
  • Higher beef prices have resulted in less featuring at the grocery stores.
  • Consumers are trading down in their protein choices.
  • The drought has been the driver this year for continued liquidation in the cattle herd.
  • The average trade guess is that placements in July of this year will be 17{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher than July of 2010.
  • There will likely be some slight expansion in the cattle herd in the northern areas of the U.S. that have experienced good moisture.

To hear Kevin discuss those headlines with Haylie Shipp, CLICK HERE.

Note:  The interview is just over 5 minutes long and may take a while load.

To get the latest market information, click on the “Grain Market” or “Livestock Market” tabs at the top of the page.  The USDA’s Cattle on Feed report will come out at 1:00 MST on Friday.

©  Northern Ag Network 2011

Haylie Shipp


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