1. Vol. 11, No. 6 / January 8, 2013
Cutout Steer
Market Comments $/cwt 2011-13 CHOICE BEEF CUTOUT VS. LIVE STEER (5-MKT) PRICES $/cwt
225 142
Following our announcement of the Daily Livestock Report transi-
Live Steer
Futures as of
tion, we had a few questions from our readers that need to be ad- 215 Ja n 7, 2013 136
dressed.
205 130
“I can’t remember my username and password.” That’s be-
cause no one has ever had a username and password for 195 124
www.dailylivestockreport.com – until now. You start by clicking
REGISTER on the menu bar. This will walk you through the pro- 185 118
cess of creating your account by specifying a username and pass-
word. After clicking the link in the confirmation e-mail, you will go 175 112
back to www.dailylivestockreport.com where you can Login and
make a contribution. From now on you can use your username and 165 106
password to make changes to your account. Choice Cutout (left) Live Steer (right)
155 100
“I don’t have a Paypal account but want to pay with a credit
card.” You do not have to have a Paypal account to pay through
Paypal. When you get to the Paypal page there will two sections
on the right side. One says to pay with a PayPal account the other live cash steer prices have moved higher in recent days, the beef
says "Don't have a PayPal account? Pay with your debit or credit cutout has languished. On Tuesday afternoon, USDA quoted the
card as a PayPal guest". You can click on "Don't have a Paypal ac- choice beef cutout at $193.5/cwt, slightly lower than where it
count" to get to the credit card entry screen. closed last Friday and just 2% above year ago levels. It is not all
“Can I send you a check?” We had not planned to do that but that unusual for beef prices to be a bit soft at the outset of the
have had several requests so yes you can. Please make out your new year. After all, consumers have been binging on roasts and
check to Daily Livestock Report and send it to P.O. Box 2, Adel, IA turkeys over the holidays and generally take a break in January.
50003. We will not mail receipts but will be happy to e-mail one if To sustain cattle prices above the $130 threshold, however, we
you wish. Include your registered name and e-mail address with will need to see the cutout break over the $200 mark and then
your check if you need a receipt. You will still have to go to stay there, something that has been difficult to accomplish so
www.dailylivestockreport.com to register. far. At this point. packers appear to have trouble getting more
money for items that seasonally should do well at this time of
Thank you for your support. year, like chucks and rounds. Retail demand is critical to push
the cutout above the $200 threshold but so far, that has proved a
Now to matters at hand. On page 2, we have included the tough nut to crack. In part this is due to lower prices for compet-
weekly production and price summary that is normally part of the ing meats (negative for beef demand). Consider how dramatic
Monday report. Some of the numbers in the report are published the change has been at the retail case in the last three years.
with a two week lag so keep that in mind when looking at the year The price of choice regular trim beef insides currently is hover-
to date totals. ing around $225-$230/cwt, almost 40% higher than what it was
in January 2010, a consequence of high cattle values. On the
On Sunday the Wall Street Journal ran a story about the
other hand, the price of pork loins and chicken breasts is about
rally in live cattle futures and the record highs established by the
the same as what it was three years ago. Beef prices should
nearby February live cattle contract. As we have noted often in this
move higher but only if the dramatic decline in beef supplies
report, tight cattle supplies are expected to propel beef and cattle
takes place. Steer weights continue to run about 2.3% above
prices in higher in the coming months, the big question is how
year go at this point (see page 2), negating some of the impact of
quickly packers will be able to pass along the higher price of beef to
lower cattle numbers. Keep an eye on weights, they will dictate
their customers. The attached chart has been updated with the
the pace of beef prices increases and ultimately how much pack-
latest choice beef cutout values and the closing futures prices for live
ers will be willing / able to pay for cattle going forward.
cattle. One can quickly see the problem with this picture. Even as
The Daily Livestock Report is made possible with support from readers like you. If you enjoy reading this report and would like to sustain it
going forward, consider becoming a contributor by going to our website: www.dailylivestockreport.com. Thank you for your support.
The Daily Livestock Report is published by Steve Meyer & Len Steiner, Inc., Adel, IA and Merrimack, NH. To subscribe, support or unsubscribe visit www.dailylivestockreport.com. Copy-
right © 2013 Steve Meyer and Len Steiner, Inc. All rights reserved.
The Daily Livestock Report is not owned, controlled, endorsed or sold by CME Group Inc. or its affiliates and CME Group Inc. and its affiliates disclaim any and all responsibility for the
information contained herein. CME Group®, CME® and the Globe logo are trademarks of Chicago Mercantile Exchange, Inc.
Disclaimer: The Daily Livestock Report is intended solely for information purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a
solicitation to buy or trade any commodities or securities whatsoever. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is
implied or possible where projections of future conditions are attempted. Futures trading is not suitable for all investors, and involves the risk of loss. Past results are no indication of future
performance. Futures are a leveraged investment, and because only a percentage of a contract’s value is require to trade, it is possible to lose more than the amount of money initially
deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyle. And only a portion of those funds should be devoted to
any one trade because a trader cannot expect to profit on every trade.

2. Page 2
Vol. 11, No. 6 / January 8, 2013
Note: Due to the reporting lags for some items, eg. poultry, ,cows, sows the year to date totals are for 2012.
PRODUCTION & PRICE SUMMARY Week Ending 1/5/2013
Current Pct. Pct. Y/Y %
Item Units Week Last Week Change Last Year Change YTD Change
5-Jan-13 29-Dec-12 7-Jan-12
Total Red Meat & Poultry mil lbs., cwe 1,374 1,504 -8.63% 1,489 -7.67% 40,431 -1.2%
FI Slaughter Thou. Head 519 479 8.35% 561 -7.45% 437 -22.1%
C FI Cow Slaughter ** Thou. Head 137 142 -3.59% 131 4.86% 6,329 -4.1%
A Avg. Live Weight Lbs. 1327 1329 -0.15% 1305 1.69% 1,327 1.7%
T Avg. Dressed Weight Lbs. 799 798 0.13% 781 2.30% 799 2.3%
T Beef Production Million Lbs. 413.6 381.5 8.41% 436.8 -5.31% 348 -20.3%
L Live Fed Steer Price $ per cwt 126.31 127.03 -0.57% 120.97 4.41%
E Dressed Fed Steer Price $ per cwt NQ 202.05 NA 196.76 NA
OKC Feeder Steer, 600-700 $ per cwt N/A N/A N/A N/A N/A
& Choice Beef Cutout $ per cwt 194.31 194.00 0.16% 192.34 1.02%
Hide/Offal $ per cwt, live wt 13.21 13.24 -0.23% 12.32 7.22%
B Rib, Choice $ per cwt 267.78 281.33 -4.82% 268.44 -0.25%
E Round, Choice $ per cwt 175.05 173.17 1.09% 181.27 -3.43%
E Chuck, Choice $ per cwt 165.86 161.94 2.42% 166.25 -0.23%
F Trimmings, 50% $ per cwt 75.50 72.92 3.54% 101.07 -25.30%
Trimmings, 90% $ per cwt 209.66 206.96 1.30% 201.23 4.19%
FI Slaughter Thou. Head 1,975 1,755 12.54% 2,064 -4.33% 1,618 -21.6%
FI Sow Slaughter ** Thou. Head 62.2 65.1 -4.44% 53.4 16.47% 2,968 -0.4%
H Avg. Dressed Weight Lbs. 207.0 207.0 0.00% 210.0 -1.43% 207 -1.4%
O Pork Production Million Lbs. 408 363.2 12.33% 432.6 -5.69% 334 -22.7%
G Iowa-S. Minn. Direct Wtd. Avg. 82.19 81.14 1.29% 81.60 0.72%
S Natl. Base Carcass Price Wtd. Avg. 81.10 80.60 0.62% 80.83 0.33%
Natl. Net Carcass Price Wtd. Avg. 83.40 82.95 0.54% 82.96 0.53%
Pork Cutout 200 Lbs. 82.58 81.86 0.88% 84.68 -2.48%
Hams $ per cwt 63.29 62.20 1.75% 69.13 -8.45%
Loins $ per cwt 88.25 86.47 2.06% 92.94 -5.05%
Bellies $ per cwt 126.48 125.11 1.10% 108.39 16.69%
C Young Chicken Slaughter * Million Head 115.4 155.6 -25.82% 126.2 -8.55% 7,875 -2.6%
H Avg. Weight (Live) Lbs. 5.64 5.64 0.00% 5.72 -1.40% 5.76 0.4%
I Chicken Production (RTC) Million Lbs. 491.3 662.4 -25.82% 541.3 -9.23% 34,162 -1.2%
C Eggs Set Million 195.6 196.8 -0.60% 193.0 1.35% 10,094 -2.1%
K Chicks Placed Million Head 158.8 167.0 -4.91% 162.4 -2.26% 8,411 -1.7%
E 12-City Broiler Price Composite 104.98 102.06 2.86% 81.61 28.64%
N Georgia Dock Broiler Price 2.5-3 Lbs. 98.31 97.94 0.38% 89.53 9.81%
Northeast Breast, B/S $/cwt 132.49 131.03 1.11% 127.46 3.95%
Northeast Legs $/cwt 66.17 66.14 0.05% 71.84 -7.89%
T Young Turkey Slaughter * Million Head 2.381 3.831 -37.85% 3.293 -27.70% 230.425 -0.2%
U Avg. Live Weight Lbs. 32.23 31.65 1.83% 31.62 1.93% 30.08 1.0%
R Turkey Production (RTC) Million Lbs. 61.4 97.0 -36.70% 77.9 -21.17% 5,586 2.1%
K Eastern Region Hen Price 8-16 Lbs. 97.00 97.50 -0.51% 101.15 -4.10%
G Corn, Omaha $ per Bushel 7.17 7.19 -0.28% 6.34 13.09%
R DDGs, Minnesota $ per Ton 222.00 N/A 177.50 25.07%
A Wheat, Kansas City $ per Bushel 7.65 7.84 -2.42% 6.61 15.73%
I Soybeans, S. Iowa $ per Bushel 14.18 14.39 -1.46% 12.02 17.97%
N Soybn Meal, 48% Decatur $ per Ton 422.60 447.30 -5.52% 306.20 38.01%
* Chicken & turkey slaughter & production are 1 week earlier than the date at the top of this sheet.
** Cow and sow slaughter reflect levels from two weeks ago due to reporting lag.