THE DAY AT A GLANCE

· Few bids/sales.

· Some producers refuse to offer

· Bids at prices to steady to last typically rejected

· Coach earnings run continues

· Packers say they are cutting kills to stem losses. Numbers say otherwise

 

 

HEAVY TEXAS STEERS

1. A bid at $76.00 was countered at $76.50 on 64/68 lbs.

 

 

BUTT BRANDED STEERS

1. A bid at $82.00 c&f was countered on seasonal weights

 

 

PLUMP COWS

1. Brands were reported at $49.00

 

 

BULLS

1. Natives were bid at $67.00 c&f and countered

 

 

INDUSTRY NEWS

1. Coach’s fiscal second-quarter earnings rose 15%, with its leather merchandise seeing demand from a growing men’s business and the retailer enjoying a good performance in the US and China.
   
   ‘We've experienced strong response to our new collections and our pricing and assortment strategy continue to resonate with consumers worldwide,’ Coach Chief Executive, Lew Frankfort said. Coach’s women's handbag and accessory sales rose about 12% across all channels in North America during the most recent quarter.
   
   Outside the US, China remains a growth area for Coach, despite indications that its economy is cooling. ‘We continue to generate very strong sales growth, significant double-digit comparable-store sales in China,’ where the company has 80 locations and believes it can do $300 million in sales in its current fiscal year, Frankfort said.
   
   The retailer also continues to expand their men's accessories lines, which Frankfort said is on pace to double in the current fiscal year to more than $400 million in global sales. For the quarter ended December 31, Coach reported a profit of $347.5 million, up from $303.4 million, a year earlier. Sales jumped 15% to $1.45 billion.
   
   Gross margin slipped to 72.2% from 72.4%, Direct-to-consumer sales, which now include its Singapore business, increased 17%. Same-store sales rose 8.8% in North America and were flat in Japan, on a constant-currency basis. Indirect sales were flat at $166 million, hurt by the timing of international shipments.

 

 

MARKET OBSERVATIONS

Today’s trend: Firm

1. Offerings have been considerably below normal this week for several reasons. First, producers are well sold. Secondly, they are anticipating higher prices next week. Thirdly, all are projecting lower kills in the coming weeks and quite possibly months, putting them even further forward sold than planned.

1. More often than not, market direction is dictated by price. Of late however, a lack of supply is the driving force behind the markets strength.

1. In conversations with the majority of major packers today, all lamented the huge losses they are enduring due to a lack of margin between live prices and what they can sell their meat for. All say they are killing as few hours as possible and are going to be late on their hide shipments. However, look below. This week/last week, this week/last week is not that much lower.

 

FEDERALLY INSPECTED SLAUGHTER

 

Today	121,000
Last week	125,000
Last year	128,000
Week to date	369,000
Last week	387,000
Last year	382,000

 

Tuesday’s slaughter included 99,000 steer/heifer 26,000 cows and bulls.

PRICE GUIDE SELECTION WEIGHT PER PC FOB Heavy Texas Steers 64-66 $75.00-76.00 Branded Steers 64-66 $73.00-74.00 Colorado Steers 64-66 $72.00-73.00 Butt Branded Steers 64-66 $74.00-75.00 Heavy Native Steers 64-66 $74.00-75.00 Heavy Native Heifers 50-52 $63.00-65.00 Branded Heifers 50-52 $62.00-64.00 Heavy Native Cows 50-52 $56.00-58.00 Branded Cows 50-52 $47.00-49.00 Spready Dairy Cows 50-52 $63.00-65.00 Over-weight Kip 25-35 $70.00-72.00 n Native Bulls 100-110 $68.00-70.00