October 15, 2007

 

US livestock market fundamental recap

 

 

A summary of fundamental data for beef and pork markets appears below. Data are as of Thursday (October 11).

 

Beef Complex

 

The US Department of Agriculture reported the choice grade boxed beef cutout value Thursday down US$1.82 per hundredweight at US$143.96. Select was down US$0.87 at US$134.36.

 

The choice/select spread was US$9.59 compared with US$10.55 the previous day. The number of loads reported for fabricated cuts was 441 and for trimmings and coarse grinds was 103.

 

The latest operating margin index for beef packers was minus US$34.55 per head, compared with minus US$28.05 the previous day. The weekly average margin is minus US$38.77.

 

The latest Chicago Mercantile Exchange (CME) feeder cattle cash index quote was down US$0.31 at US$113.62.

 

Thursday's cattle slaughter was 124,000 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.)

 

Pork Complex

 

The USDA pork cutout value for Thursday was US$61.47 up US$0.93 from the previous day.

 

The Dow Jones packer margin index for Thursday's operations was at plus US$4.36 per head, compared with plus US$3.62 the previous day.

 

The live hog equivalent price, based on 51 percent to 52 percent lean carcass values, for Thursday was US$41.04 up US$0.16 from the previous day.

 

The projected value for the two-day average CME lean hog index for Wednesday was US$57.55 down US$0.10 from the previous day.

 

Thursday's hog slaughter was estimated at 423,000 head.