![]() ![]() The average dressed steer weight in January of 893 pounds was 7 pounds less than the same month a year earlier, according to the most recent USDA Livestock Slaughter report. Fewer days on feed beget lower average carcass weights. On the one hand, lower breakevens combined with relatively higher sale prices are encouraging feedlots to keep turning pens. More than anything, though, feedlot currentness and snugger beef supplies seem to be the drivers. Select was $6.24 higher at $195.48 the highest since last July.ĭomestic demand and resilient international trade (see “Beef exports gain momentum,”) are part of it. ![]() There is no doubt the April contract price and the cash price will converge to close some of the gap over the next couple of months, but which market will move the most?”Ĭhoice boxed beef cutout value was $8.47 higher week to week at $190.49 per cwt on Friday. “The million dollar question is if the current price level can be maintained or pushed higher. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. A second strong argument to support moving cattle out of pens and into packers’ hands is the close to $8 discount from February to April Live Cattle,” explains Andrew P. “The positive basis gives cattle feeders a strong argument for moving cattle out of pens and onto a rail. Clean-up sales in Kansas and Colorado on Friday were steady with the top at $125. Dressed trade in Nebraska and the western Corn Belt was $6 higher at $196. By the time country trade finished that day, live prices were $4-$5 higher in the Northern Plains and Southern Plains at $124-$125 ($123-$125 in Iowa-Minnesota). Superior’s Fed Cattle Exchange set the stage for higher money early Wednesday with a weighted average of about $122 per cwt on more than 3,000 head. Analysts there point out there were instances of $6-$10 higher in parts of the country where calves are headed south for grazing.ĭemand remains good for calves and stocker cattle weighing 500-700 pounds, with the best demand for those that are long-time weaned with good weighing conditions, analysts say.Ī surge in cash fed cattle prices underpinned market optimism. Steers and heifers traded mostly steady to $4 per cwt higher, according to the Agricultural Marketing Service (AMS). This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Cattle Market Weekly - Aggressive feedlot marketing and continued demand for calves aimed at grass turnout helped lift calf and feeder cattle prices this week. Spam protection has stopped this request. Posted by Smith at 5:06am August 29, 2022 While exports are expected to slow in the 4 th quarter as beef production decreases, it does appear likely that a new record for beef exports will be set in 2022. However, the combination of high cow slaughter and early placement of cattle on feed, has kept beef production higher than expected. At the start of 2022, most expected beef export levels to decline, mostly due to an expected decrease in beef production. Also remember that 2021 was a record year for US beef exports. Through the first six months of 2022, beef exports have been 7% higher than last year. I also wanted to take a quick look at beef export levels as those have not gotten a lot of attention in recent months (see chart below). But, when combining that with the drought implications, fundamentals are setting up for a seller’s market for feeder calves. Given the continued reduction in the size of the beef cow herd, this was likely to be a smaller fall calf run had weather not been a challenge. ![]() Last week, Josh wrote about high placement levels of light weight feeders, which has been another trend due to dry conditions in much of the country. Beef cow slaughter levels have been discussed several times in this newsletter and remain 14% above 2021 levels. It is becoming more apparent that the supply of calves is going to be very tight this fall. The chart below shows steer calf prices in the Southern Plains, which have been increasing through July and August. A strong calf market going into fall is a good sign for cow-calf operators that calve in the spring and will be marketing calves in the coming months. Heavy feeders typically make their highs around this time of year, but calf markets are increasing counter-seasonally. The October CME© feeder cattle futures contract has increased by more than $10 per cwt since May and this can been seen in the market for heavy feeder cattle. The feeder cattle market has really flexed its muscles as we have moved through summer. Kenny Burdine, Extension Professor, Livestock Marketing, University of Kentucky ![]()
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