Market Report - June 16, 2023

Cattle Market Report:  

We are seeing an expected correction in the market. Although the feeder market has corrected a little stronger than the fed market. I still think that packers are trying to manipulate the market every once in a while. Even if they aren’t, it certainly seems like they buy heavy one week and then buy light the next. This little bit of volatility is certainly expected as part of a “healthy” market climb. We may be approaching the top. 

Boxed beef doesn’t seem to notice any fluctuations in the market. It seems like there is a push to pass higher prices on to the consumer. I have read some articles that indicate the recent pass on raising the interest rate might be a back door approach by the fed to cool inflation by prompting higher prices on goods. In theory this would cool consumer spending. I don’t pretend to guess what is driving the decisions. ‍

Grain Market Report

‍Grains are up this week with concerns of drought conditions fueling the increase. Soybeans had a little stronger showing than corn. This could be playing a part in the market as well, however, with no downturn in the retail sector, it seems that feeders are still making money even with higher input costs. These higher grain prices may not be the new norm, but if they persist into July and beyond, it may have greater effect on the market. 
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Cattle and Grain Markets for June 16, 2023

‍Sheep Market Report:

San Angelo was mostly lower $10-15 last week. Hamilton, and Goldthwaite were $10 off to steady. New Holland was lower as well. The USDA estimated domestic lamb and mutton meat production for the week ending June 10th totaled 2.24 million pounds on a 35,000 head slaughter this week compared to 1.86 million pounds and 29,000 head the previous week. Those lower numbers are contributed to the shorter holiday week.  Imported lamb and mutton meat for the week ending June 3rd totaled 3.93 million pounds which is 211 percent of the domestic production for the same period.

Sheep markets for week ending June 16th, 2023

*No Quote ** Not Applicable

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Hay Market Report:

Areas across the Great Basin region have struggled to get their first crop harvested. Regular monsoon type storms have prompted a lot of growers to hold off harvesting. Those who have cut will have lower quality hay as a lot of it will have been rained on. California has seen a drop in hay values over the last little while as higher quality hay is hard to find and dairy demand being spotty. Exports are still week as well. 

*Ross Bronson and Redd Summit Advisors are not financial advisors, and this market report is in no way intended to provide financial advice. This commentary is merely meant to be insight and input about current market conditions. It is recommended that any market commentary be compared to your own trusted sources, experience, and market evaluation. Especially those that are more specific to your regional market dynamics. 

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