Grimes and Plain Weekly Cattle Outlook

CHICAGO - Oct 10/08 - SNS -- Following is a week ending cattle market comment from the University of Missouri - Columbia's Glenn Grimes and Ron Plain.

Fed cattle prices for the full week last week were pushed between two

and three dollars per cwt below a week earlier.

A significant part of the weakening is due to a weak domestic consumer

demand, which was down five percent for January-August from a year

earlier.

The male-female slaughter ratio for August was at 1:11 was

substantially below a year earlier 1:22 and the 10 year average of

1:18. The smaller ratio indicates a larger share of the slaughter

ratio is female, another indication that producers are reducing the

size of the breeding herd. Remember the beef cow breeding herd was

down a little on both January 1 and July 1 of this year compared to a

year earlier.

The corn price in the futures market this week at $4.00 plus some

change was down close to 50 percent from the high in June. These lower

prices need to be looked at closely as a buying opportunity for cattle

feeders.

Feeder cattle and calves took a hard hit this week at Oklahoma City

with prices down $5-$10 per cwt from a week earlier.

The price range by weight groups for medium and large frame No. 1

steers at Oklahoma City this week were: 400-500 pounds $107.50-119.50

per cwt, 500-600 pounds $103-113 per cwt, 600-700- pound calves

$85-94.25 per cwt, 600-700 pound yearlings $96.50-102.25 per cwt,

700-800 pounds $95.50-99.50 per cwt and 800-900 pounds $93-96 per cwt.

Wholesale beef cutout prices took a roller coaster ride this week with

a $4 per cwt increase in Choice beef on Monday, then over a $6 decline

on Wednesday. On Friday morning, Choice beef at $149.86 per cwt was

down $2.83 per cwt for the week. Select beef at $143.64 per cwt was

down $3.31 per cwt from seven days earlier.

Some of this uncertainty in the financial markets carried over into

the cattle market this week with the weighted average price the

five-market at $91.50 per cwt down $4.50 per cwt from Thursday last

week. The weighted average negotiated carcass price for the

five-market area through Thursday at $140.85 down $7.15 per cwt from

seven days earlier.

Slaughter this week under Federal Inspection was estimated at 650

thousand head, up 1.7 percent from a year earlier.

Issued by Glenn Grimes and Ron Plain

University of Missouri - Columbia

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. and/or STAT Publishing or its staff and/or management.