Market Report - Week of November 3, 2023

Cattle Market Report:‍

Cattle markets were down over the last two weeks, though not significantly. It is interesting that I can read several different sources and have one talk about an inevitable downturn, and the other discuss a possible breakout upward. In some ways that shows that we are in uncharted territory. Sure, we had a similar rise in the markets about 10 years ago, but there are a lot of factors now that are different from then.

I anticipate a fairly standard winter season where we see normal market dynamics. The challenge right now is the feeders and the packers playing chess with their costs and potential revenues. That happens on a regular basis, but right now there has to be more strategy and thought put into their moves. The sources that I trust the most. The ones with both market and industry understanding. The ones that aren’t just paying the futures. Those voices are optimistic about prices over the next year or two and I agree.‍

Grain Market Report:‍

Overall, the last two weeks corn ended down after some big swings and a large rally late Friday along the way. Soybeans ended up also enjoying a strong up trend on Friday. It sounds like yield reports are mostly to blame for the shifts as soybean harvest has been slow to start and concern about the ability to harvest. Yields are projected to be lower than average. Corn yields, while less than last year, are projected to be better than previously projected over the summer.  There is also talk of drier conditions in South America and some higher interest in buying by China.

Cattle and Grain Markets for November 3, 2023‍

Sheep Market Report:

Texas markets had little to show the last week but at least maintained prices with some gains of $20 or more. New Holland most steady to weak. The USDA estimated domestic lamb and mutton meat production for the week ending October 28 totaled 2.2 million pounds on a 34,000 head slaughter this week compared to 2.1 million pounds on a 36,000-pound slaughter the week before. Imported lamb and mutton meat for the week ending October 21st totaled 5.34 million pounds.

Sheep markets for week ending November 3, 2023

*No Quote ** Not Applicable

‍Hay Market Report:

As has been the case for a large part of the year, demand for quality, high-testing hay is strong. Demand for exports has picked up but not enough to increase prices. Diaries are still players but seem to be spotty in their demand and milk prices have been unstable. The ranching side of the livestock industry has still been slow to buy. In addition, there is plenty of cow hay on the market to fill their interest.  

*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.