Scott Brown Weekly Livestock Update, July 17th 2017

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Some highlights from this week’s Weekly Livestock Market Update:

•The USDA released its latest WASDE report. Scott notes that beef production estimates were increased by 270 million pounds for 2017. That lowered their fed steer price by a $1 for 2017 average. Barrow and gilt estimates were raised $2, driven mostly by continued strong demand and modest supply reduction.
•Market Recap for the week: Fed cattle were mostly $2 higher and feeder cattle steady to $5 higher. Pork cutout value was up 54 cents. Lead by belly prices, which were up $4.38 for the week. Belly prices were volatile this week – on Thursday they declined $4.37, which was the largest daily drop since late April. Choice beef cutout fell $7.26 with weakness across the board on cuts.
•Consumer Confidence was released this week. While it is up 3.4% from a year ago, it is down 2% relative to June and down 10% from its January peak. Brown says the decline in consumer confidence could have an impact on domestic demand. The Index of Consumer Expectations was down more than 4% of the month, which indicates future weakness in consumer confidence.
•Retail prices were released this week. Both beef and pork prices were higher in June relative to May. Beef prices were 7 cents higher than last month and pork was up 3 cents. Steak prices were up 27 cents month over month. Brown says an increase in retail prices is good for producers but could shy consumers away from beef and pork products.
•Cattle on Feed preview for next week: Scott says we could see higher placements due to calves from the Dakotas being moved to feedlots sooner than usual and continued strong movement of Mexican calves into the United States. The report will also show steer vs. heifer placements.
•The July Cattle Inventory report also comes out next week.
•Subscribe to BrownfieldTV on YouTube for John Perkins’ daily opening and closing #MarketMinute reports.


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