The January cattle inventory survey said the U.S. herd has grown for the second consecutive year. According to USDA, the country started 2016 with 92 million cattle and calves, up 3.2% from a year earlier and the most cattle at the start of a year since 2011. The 3.2% increase is the biggest annual inventory increase since 1974. USDA lowered their estimate of the January 2015 cattle inventory by 657,000 head.
Insights about the recent market price shocks and potential for future turbulence were discussed today with more than 2,000 beef producers at the CattleFax Outlook Session held during the 2016 Cattle Industry Convention and NCBA Trade Show.
Would you believe a $6 to $7 corn price prediction? Bill Kirk, a weather statistician and owner of Weather Trends 360, asserts that corn prices could hit the $6.50 to $7 range this summer. According to his weather outlook, 2016 will mean lower yields both in the U.S. and in Brazil, reversing the current supply and demand debacle.
FED CATTLE: Fed cattle trade was not well established at press. Live cattle bids ranged from $132 to $135 while a few cattle traded on a dressed basis between $210 and $212. The 5-area weighted average prices thru Thursday were $131.00 live, up $4.38 from last week and $209.16 dressed, up $7.16 from a week ago.
Feedyard closeouts saw a $100 per head improvement last week, bringing losses under the $300 per head mark for the first time in months. The Sterling Beef Profit Tracker pegged losses at $245 per head, after a $3 per cwt. rally in the 5-area cash price to $137.35.