Market Report - May 19, 2023

Cattle Market Report:  

The last two weeks have seen a bounce back from the drops we saw in both the fed and feeder cattle markets May 2^nd and 3^rd. The more recent climb as been a more sustainable one in my opinion. I have read several sources that predict some jumble over the next few weeks to month. Packers and feeders still aren’t quite sure how to handle prices and their lower margins just yet. I am still looking to mid-July to see what consumers are really going to do with spending on beef. Until then I anticipate steady demand. With unemployment at 3.4% as of last month, consumers are likely to maintain spending through Memorial Day, Father’s Day, and the 4^th of July. Corn and soybeans are both down the last two weeks, and most I have read indicates that they should stay lower for the summer. This will help feeders desire to pay the higher prices rather than adjust operations in order to affect demand. 

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Grain Market Report:

As mentioned, corn and soybeans are both down over the last two weeks. They were pretty aggressive drops so I would anticipate some rebound. However, there is a lot of optimism around the new crop this year with most anticipating good yields. I guess we’ll see how the summer plays out for moisture and if growers run into any weather issues that will affect growth or harvest. 

Cattle and Grain Markets for May 19th, 2023

Sheep Market Report:

Sheep markets were mostly steady to higher last week for San Angelo, Hamilton, and Fredericksburg.  Goldthwaite was down. The USDA estimated domestic lamb and mutton meat production for the week ending May 13th totaled 2.21 million pounds on a 35,000 head slaughter this week compared to 2.14 million pounds and 35,000 head the previous week. Imported lamb and mutton meat for the week ending May 6 totaled 4.29 million pounds which is 200 percent of the domestic production for the same period.

Sheep markets for week ending May 19th, 2023

Hay Market Report:

The key discussion topic for this week on hay is the fact that a lot of producers are seeing rebounding crops. Even with the late spring in a lot of the west, crops have bounced back with fast growth thanks to several warmer than average weeks. The talk of later harvest, or lower yields as all but stopped. A lot of the Basin country will start harvesting soon or have already in some of the warmer climates. Exporters are hoping for more, better testing alfalfa this year. 

*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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