US Perspective—02.12.08
November ended with continued pressure on the hide markets. The steer prices settled at around $42-$44, heifers at $34-$38, and branded cows in the $11-$12 range.
Slaughter ended at 584,000, down 12,000 compared with Thanksgiving week a year ago. Lower kill numbers are the result of pressure on margins for packers, created by lower demand for beef at retail and food service.
Last week saw a smaller drop in cow prices, indicating a possible floor in pricing. Some traders experienced brisk business at the end of the week, while others said sales were spotty.
Packers and traders reported little activity today. Most expect a continued decline in pricing, but are hoping the elusive bottom will soon be reached. Customers that are willing to take delivery and are able to open letters of credit are still in the driving seat.
Last week’s equities ended with five straight days of increase for the DJIA on light trading, closing up 9.7% for the week but down 5.3% for November.
Today’s economic news led with the Dow down 680 points giving back a huge chunk of last week’s gain.
