All Eyes Turn To WASDE

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If carryout is lowered today it will adjust our fair value levels slightly but both corn/beans are still expected to be in a range of trade possibly up to the January crop report as the USDA typically makes no changes on the December report. Today’s numbers will determine what our new trading range will be.

Cattle – BB much lower, $3 lower cash trades in NE/IA

↓ Yesterday’s PM BB was choice -6.13 select -3.48 packer BE at 187.06, packer cushion -$2.94

↓ Boxed beef has gone from bad to worse to now lowest packer profits on the year and there is no BB recovery in sight, this now makes 7 lower BB trading days in the last 8

↓ Cash trades of 187 in NE and IA, $3 lower than last week, most of this was on 85% - 90% graded cattle

↔Boxed beef has been telling us for days that packers would eventually pull back bids to limit their losses and that’s exactly what we saw in yesterday's cash trades

↓ If BB continues to move lower, it will start painting a negative picture for cash next week as well

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