Market report for Jan. 22
Compared to last week, the bulk of the calves traded mostly 5.00-15.00 lower with yearlings selling 5.00-10.00 lower. There were instances throughout the trade areas mostly in the Northern Plains and Midwest where 500-750 lb steers and yearlings over 800 pounds sold steady, with a few auctions even reporting a higher market; but overall the majority of the markets reported lower prices. Demand was moderate to good this week as cattle feeders are trading cautiously as they are still faced with losses on outgoing cattle. The extreme up and down shifts in the cattle futures continued Jan. 21 as buying support entered back into the markets with limit to near limit gains for cattle futures. The uptrend continued into Jan. 22 as many markets are looking to close higher on the week after the markets appeared to be on the ropes at midweek as cattle futures closed with sharp triple digit gains on Jan. 22. The stock market also received a reprieve from this week’s rout closing with solid gains on Jan. 21-22. Price risk is hard to determine and a difficult job these days with world markets staying in a volatile mood. The cave-in in crude oil prices could have a negative impact for a number of countries and banks. There is many unknown variables at this point and how situations may or will unfold leaving much uneasiness in the markets. One of the concerns with the global economic unease, will it continue to affect U.S. beef exports and how will it impact demand?