Meat Market Meltdown

[errolanderson]

The U.S. meat glut continues to swell. Carcass weights have hit record highs.
This has forced packers here to defer lift-times.

Hog bids have slashed lower over the past two weeks. Texas/Kansas cash cattle traded $6 lower on Friday aft at $128/cwt.Feeder cattle bids (all classes) and cow bids remain pressured.

Cattle board exceptionally volatility with 'limit up' and 'limit down' days.
Meat markets trying to find price stability as cold storage remains at full-capacity.

[perfecho]

The "good days" didn't last long, but considering what is happening to everything else, somewhat expected.

[sumdumguy]

Law of Supply and Demand.

[perfecho]

Or law of "meltdown"....

[errolanderson]

The global commodity meltdown is quite amazing. Steel, iron ore copper (true economic indicators) have all dropped in-half.

Another amazing stat . . . the Shanghai Containerized shipping index (reflects cost of freight between Shanghai and Europe) is now 45% below even the 2009 lows. A major shake-up in the ocean freight business is apt to occur.

To me, U.S. economy is now at heightened risk of entering a recession in 2016. And this one could be quite nasty. Janet Yellen; hike them rates . . . .

[chaser]

So Error what does your crystal ball say for feeder calf future

[chaser]

Oops Errol

[Crestliner]

I got excited for a moment when I saw Meat Market Meltdown.....that was at Louis Pub at the U of S when I was there.

[WiltonRanch]

Think we could see further weakness farther out if heifer retention numbers in the USA are accurate. Finally got wet and guys are in full retard mode building their herd numbers back up. Talk market meltdowns but I think cattle cycle dynamics will drag it down in the next couple years.