|>>> Reminder Producers<<<
Markets are changing particularly
rapidly right now with reaction
to the COVID-19 pandemic. We
are monitoring plant closures and
other factors that may affect you
and your cattle marketing.
Please stay in touch with your
Nexus livestock rep.
- The battle remains between the cutout, cash, and feedlot backup.
- Packer margins near $1,000/head.
- Cattle continue to back up at the feedlot level.
- Slaughter this week so far is 397,000 head vs 481,000 last year and 358,000 last week.
- Slaughter capacity is building but not fast enough
- We will again back up close to 100,000 head this week and the same or more next week.
- Next week’s slaughter will probably be 500,000 head (short kill week) vs 650,000 head needed.
- Packers will be buying for a full week next week.
- Retail margins are near zero or negative, this limited Memorial Day featuring (poor demand).
- COF estimate 90.7%, Placements estimate 80.5%, Marketing estimate 74%.
- Cold storage beef up 13.9% vs a year ago, weights are large.
- Beef in cold storage is 489.999 mln lbs, down 12 mln lbs vs March.
- Seasonals are negative. Discounts of futures to cash is the positive.
- USDA has cash cattle at 98-100 from now until next March. Call for updates.
- Feeder Cattle Index: $126.60 vs $126.89 prior.
- Boxed beef: Choice down $2.23/cwt to $401.81, Select down $8.65/cwt to $382.53, C/S spread $19.28, 136 loads.