5 Market Weighted Average, Weekly SLAUGHTER …

1 Sponsored by Vol. 13, No. 221 / November 12, 2015. Volatility has been rampant in the cattle Market , week to increasing into October. week in the cash Market and daily in the futures. Arguments Within regions, the largest weight increases between can be made as to why this is happening and if we will ever see time periods showed up in IA-S. Minn. and NE (probably normal again. Stepping back a bit, we analyzed the recent largely eastern NE) steer and heifer data, through October. state of some fundamentals in the fat cattle cash Market , that These are also the regions with the larger cash discounts to have played at least some part in recent Weekly cash price the five Market average . Those discounts carried into the movements.

2 Week of 11/8, indicating that although live weights had The table below depicts the numbers that will be discussed. come down, the Market ready cattle backlog was still a AMS Weekly reported fat cattle cash or negotiated prices were regional concern. Another interesting note is all regions taken for representative weeks over the past few months for have seen a shrinking premium on heifers compared to multiple regions that are included in the five Market average . steers, except Nebraska where they retain a historically The goal was to dissect how live weights and prices have large premium. changed from August to November, for steers and heifers Moving between the time periods analyzed, more between regions that make up the five Market average .

3 Apparent price differences between regions pop up, serving The beginning of August was just prior to the cash Market as a reminder that although this Market is usually thought of collapse, and it can be seen in the table that during the week of in a national context some very distinct regional differences 8/2, fat cattle showed even prices across the indicating a can occur. TX-OK-NM and KS carried consistent premiums, national type Market . Heifers were also going for a premium to compared to the five Market average price, from September steers that week, a consistent trend across the four weeks that on. Again, we assume this is the Market indicating demand were analyzed. The heifer to steer premium indicates the for lighter weight cattle as these two regions were 50 to 150.

4 Market was already chasing lighter weight cattle. As we move pounds lighter than NE and IA-S. Minn. each of the weeks on to September and even more so in October, significant analyzed. differences become apparent in cattle weights and prices between regions, and heifer premiums were for the most part 8/2/2015 9/6/2015 10/4/2015 11/8/2015. Live Wt. Price $/cwt Live Wt. Price $/cwt Live Wt. Price $/cwt Live Wt. Price $/cwt SLAUGHTER STEER PRICES. 5 Mkt Steers 1435 1459 1498 1489 5 Market Weighted average , Weekly $ Per Cwt. Ave Heifers 1267 1290 1309 1321 185. 175. Steers 1375 1371 1419 1436 165. KS Heifers 1228 1240 1246 1275 155. 145. 135. IA-S. Steers 1458 1484 1543 1511 125. Minn Heifers 1270 1293 1361 1311 115.

5 105. TX-OK- Steers 1321 1422 1403 1363 95. NM Heifers 1185 1150 1320 1228 85. JAN APR JUL OCT. Avg. 2009-13 2014 2015. Steers 1446 1461 1513 1470 Data Source: USDA-AMS. NE Heifers 1304 1319 1335 1375 Livestock Marketing Information Center The Daily Livestock Report is made possible with support from readers like you. If you enjoy this report, find it valuable and would like to sustain it going forward, consider becoming a contributor. Just go to to contribute by credit card or send your check to The Daily Livestock Report, Box 4872, Manchester, NH 03018. Thank you for your support! The Daily Livestock Report is published by Steve Meyer & Len Steiner, Inc., Merrimack, NH. To subscribe, support or unsubscribe visit Copyright 2015 Steve Meyer and Len Steiner, Inc.

6 All rights reserved. The Daily Livestock Report is not owned, controlled, endorsed or sold by CME Group Inc. or its affiliates and CME Group Inc. and its affiliates disclaim any and all responsibility for the information contained herein. CME Group , CME and the Globe logo are trademarks of Chicago Mercantile Exchange, Inc. Disclaimer: The Daily Livestock Report is intended solely for information purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicita- tion to buy or trade any commodities or securities whatsoever. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

7 Futures trading is not suitable for all investors, and involves the risk of loss. Past results are no indication of future performance. Futures are a leveraged investment, and because only a percentage of a contract's value is require to trade, it is possible to lose more than the amount of money initially deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyle. And only a portion of those funds should be devoted to any one trade because a trader cannot expect to profit on every trade.