wmeubank@ocp.kcmo.com
ALLENDALE, INC.
4506 Prime Parkway, McHenry, Illinois
(November 7, 1997) CATTLE: HOW'S THAT FOR A WEEK? Cattle markets are still adjusting to prices that are 1.00 lower than last week's. Just after narrowly missing the packer/owner confrontation, the livestock markets awoke to another Asian market crisis. Coupled with seasonal pressures on beef, we've added new variables to the price mix. What can we see next week? Sources are reporting that packers have bought for the near term this week as unfinished supplies await around the corner. Some are expecting continued lower prices until product can turn around. If the Asian markets remain uncertain, we may see minor price support in the near term. While U.S. Plains received quiet bids at 67 with no sales as of mid-day, the Texas Panhandle did report active trade. USDA slaughter estimated 128,000 today compared with 129,000 a week ago, and 134,000 a year ago. The CME feeder cattle index fell .02 at 76.98. Carcass values were down for all categories. Choice fell .27 to .21 and select dropped .23 and .07 for light and heavyweights respectively. Futures have used the Asian market problems and fund spreading to propel the deferred contracts to a positive close. Feeders snubbed their nose at higher corn prices and rose on fund buying and jitters of Monday's Crop Production report. We may get some direction towards the middle of next week as the market begins to settle down.
Rich Nelson
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