CBOT futures have been weighed down by the improved prospects for some rain in areas of South America and the southern Plains of the U.S. However, futures closed near the day’s highs in late strength tied to bean sales to China and better-than-expected ethanol production in the latest government report. Traders are grasping for news.

Live Cattle futures closed little changed. Traders were positioning ahead of Friday’s Cattle on Feed report and guessing the impact of Japan and Russia trade decisions. Boxed beef took a big hit today with Choice DN 1.77 at 188.01 and Select DN 0.71 at 182.19. HOWEVER, an afternoon surge in the price cattle traded at the feedlots has caused a strong rally in Live Cattle futures in after-hours electronic trading – now showing February up 82 cents from the close.

The average trade guess for the Cattle on Feed report is January 1^st inventory at 95.6 percent of a year earlier. Placements are expected up 4 percent.

Corn Mar +3.5 724; Jly -2 715; Dec -5 585

Bean Mar -2 1435; Jly -2 1417; Nov +1 1306   Meal Mar -2 415; Oct +1 364    Oil +8 5211

Wheat Mar -6 768; Jly -6 782;   KC -9821;  MGE -5 855

LC Feb +10 12587; Apr -10 13035; Oct +55 13207 FC Jan +40 14460; Apr +117 15117; Aug +120 15987 LH Feb +107 8705; Apr +167 8967; Jly +80 9740 Milk Jan unch 1812; Feb -9 1712

Oats +1 361 Rice -2 1528

US$ +.1%

Dow +46 13825 SP unch 1495 NAS -23 3130 Tran +95 5855   VIX +.23 12.69

WTI +67 9590 Brent +53 11333 Gas +2.6 286 NG -8.5 347 HO +6.4 308.5 Eth +1

Gold -17 1670 Slvr -72 3172

5-yr +.021 0.769% 10yr +.026 1.855% 30yr +.024 3.046% 

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/23/12

    Receipts: 2,439   Last Week:  3,815   Year Ago:  2,192 **Total receipts include 284 head sold in cow sale Wed. night.

    Compared to last week steer and heifer calves sold steady to 5.00 lower with light to moderate demand.  Yearling steers sold 2.00 to 3.00 lower with light to moderate demand. Yearling heifers untested.  Slaughter cows sold 2.00 higher with good demand. Slaughter bulls sold steady with moderate demand.

   Total supply included 08% slaughter cows, less than 01% slaughter bulls, 12% replacements and 79% feeders.  Feeder supply 37% steers, 25% bulls, 38% heifers with 50% of feeders weighing over 600 lbs. 

Commercial Red Meat Production Down from Last Year Commercial red meat production for the United States totaled 4.00 billion pounds in December, down 5 percent from the 4.22 billion pounds produced in December 2011.

Beef production, at 2.02 billion pounds, was 5 percent below the previous year. Cattle slaughter totaled 2.54 million head, down 8 percent from December 2011. The average live weight was up 26 pounds from the previous year, at 1,323 pounds.

Veal production totaled 9.8 million pounds, 9 percent below December a year ago. Calf slaughter totaled 65,400 head, down 10 percent from December 2011. The average live weight was up 1 pound from last year, at 254 pounds.

Pork production totaled 1.95 billion pounds, down 5 percent from the previous year. Hog slaughter totaled 9.47 million head, down 5 percent from December 2011. The average live weight was down 2 pounds from the previous year, at 276 pounds.

Lamb and mutton production, at 12.8 million pounds, was up 3 percent from December 2011. Sheep slaughter totaled 189,700 head, 5 percent above last year. The average live weight was 135 pounds, down 4 pounds from December a year ago.

January to December 2012 commercial red meat production was 49.4 billion pounds, up slightly from 2011. Accumulated beef production was down 1 percent from last year, veal was down 9 percent, pork was up 2 percent from last year, and lamb and mutton production was up 5 percent.