February 14, 2009

 

US livestock market fundamental data recap

A summary of fundamental data for beef and pork markets appears below. Data are as of Thursday (February 12).

 

The US Department of Agriculture reported the choice grade boxed beef cutout value Thursday down US$0.30 at US$136.12 and select was up US$0.05 at US$135.25.

 

The choice/select spread was US$0.87 compared with US$1.22 the previous day. The number of loads reported for fabricated cuts was 160 and for trimmings and coarse grinds was 66.

 

The latest operating margin index for beef packers was minus US$22.80 per head, compared with minus US$17.00 the previous day. The weekly average was minus US$14.95.

 

The latest Chicago Mercantile Exchange feeder cattle cash index quote was up $0.18 at US$95.01.

 

The USDA's estimated Thursday's cattle slaughter at 122,000 head.

 

(Note: The operating margin index is not intended as an exact profit/loss statement for packers, but as an indication of the general health of the industry. The index was calculated by HedgersEdge.com.)

 

On the other hand, the USDA pork cutout value for Thursday was US$58.54 down US$0.13 from the previous day.

 

The Dow Jones packer margin index for Thursday's operations was minus US$8.54, compared with minus US$5.54 the previous day.

 

The live hog equivalent price, based on 51 percent to 52 percent lean carcass values, for Thursday's was US$43.46 up US$0.66 from the previous day.

 

The projected value for the two-day average CME lean hog index Wednesday was US$57.21 up US$0.57 from the previous day.

 

USDA estimated Thursday's hog slaughter at 429,000 head and adjusted Wednesday's kill downward to 408,000 from 419,000.