In this file:

 

·         Analyst: Livestock Markets Look Bullish in 2019

Cattle and hog markets could be primed for a bull run during 2019, according to a market analyst…

 

·         What's the outlook on the strength of the economy in 2019?

Financial markets have been in turmoil the end of 2018. What does that spell for beef demand in 2019?

 

·         Can Meat Demand Pull Additional Beef and Pork Supplies Through 2019?

Meat cases are getting fuller, with livestock and poultry production continuing to expand. And all those extra animals mean there’s continued demand for feed supplies in 2019...

 

 

Analyst: Livestock Markets Look Bullish in 2019

 

Wyatt Bechtel, Drovers

January 3, 2019

 

Cattle and hog markets could be primed for a bull run during 2019, according to a market analyst.

 

In an interview with AgDay, John Payne, senior broker of Daniels Trading and thisweekingrain.com, shares his thoughts about where livestock markets are headed.

 

Closing out 2018 fed cattle prices held strong with packers staying profitable. Payne believes that the number of cattle on feed will come down which should spark a rally in 2019.

 

For hogs, Payne has found it interesting that prices for lean hogs haven’t gone up with China’s recent African Swine Fever outbreak.

 

“I’m a livestock bull in 2019. We’re seeing limiting numbers. We’ll get the pig numbers figured out, in the short term it is kind of stock market trade and they are getting washed in with that,” Payne says...

 

more, including video report [2:46 min.] 

https://www.drovers.com/article/analyst-livestock-markets-look-bullish-2019

 

 

What's the outlook on the strength of the economy in 2019?

Financial markets have been in turmoil the end of 2018. What does that spell for beef demand in 2019?

 

Nevil Speer, BEEF Magazine 

Jan 03, 2019

 

The decline in equity markets over the past several months certainly has the financial markets on edge. The drop has been sharp. But perhaps more importantly, there’s been a lot of noise and chatter around the drop. 

 

Nevertheless, the economy has been resoundingly strong through 2018 and forecast to remain the same in 2019. One of the major benefactors of that economic strength has been the beef industry. Domestic demand has been surprisingly robust through the year, helping to underpin cattle prices despite higher levels of meat production.  

 

However, an economic downturn could put a damper on demand. There are any number of ways to measure the outlook on economic activity including GDP, employment rates, etc. One of the most tangible ways, though, to look at broader expectations is through analyst expectations for company earnings in the coming year.  

 

This week’s graph highlights moving four-quarter aggregate earnings estimates for the companies in the S&P 500 Index. As noted, 2018 witnessed major earnings growth to the upside.

 

But more importantly, despite all the noise in recent months, analysts expect 2019 to be another good year, with aggregate earnings pegged around $170-to-$175. That said, as I’m writing this, the S&P 500 index is trading at about a 14X forward multiple—meaning in the absence of any major economic disruption, there’s plenty of room for the market to run higher. 

 

What’s most important in this discussion is the general trend...

 

more, including links, chart

https://www.beefmagazine.com/outlook/whats-outlook-strength-economy-2019

 

 

Can Meat Demand Pull Additional Beef and Pork Supplies Through 2019?

 

Sara Brown, Drovers

January 3, 2019

 

Meat cases are getting fuller, with livestock and poultry production continuing to expand. And all those extra animals mean there’s continued demand for feed supplies in 2019.

 

“We're anticipating continued growth in all of the meats—beef, pork and poultry in 2019,” Derrell Peel told Chip Flory on AgriTalk Thursday. While the year-over-year pace might be a bit more modest than we saw in 2018, feed demand is likely to tick up as a result in the new year.

 

 “Pork production is probably growing the strongest across the board,” Peel said. “Beef numbers are beginning to moderate a little bit, although the Dec. 1 Cattle on Feed inventory was the highest we've had since 2007. So, we're working with significantly bigger numbers than we've had in the cattle industry for some time.”

 

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Greg Henderson, editor of Drovers.com, said it’s no surprise there will be more meat and poultry supplies in 2019. With pork growth estimated to be up 5% and beef up 3% this year, “we're putting a lot of meat in front of consumers and demand has got to hold,” Henderson said.

 

“One of the estimates that I saw on economic growth here in the U.S. 1.7% GDP growth. I would I think it's a little conservative,” added Chip Flory, host of AgriTalk and economist for Farm Journal. “And it would suggest that while we have seen excellent demand for red meat here in the country, that it might start the back off just a little bit.”

 

How will this affect feed demand? ...

 

more

https://www.drovers.com/article/can-meat-demand-pull-additional-beef-and-pork-supplies-through-2019