AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017
258,900 178,400 276,400
Compared to last week: Steers and heifers sold 1.00 to 5.00 higher, with instances 6.00 to 8.00 higher this first full week after Memorial Day. Demand was reported moderate to good nationwide as more optimism was evident in the marketplace.
The CME Cattle Complex has rebounded from the most recent downturn in mid-May. The June Live Cattle contract is trying to converge with the negotiated cash trade. Cash trading is pulling the futures higher and this week’s reported cash sales have been slow to materialize.
Packers need to have more inventory around them soon so they can try and temper the uptick in prices. Starting the middle of March and after 10 consecutive weeks of 20K or more for 15-30 delivery on fed cattle, the past couple weeks have cooled to 19K and 9.9K respectively for those cattle bought out front.
Packers have managed their inventory to drive national negotiated cash trading down 14.00 in the past four weeks. In addition, packer margins have been rather large with some being reported around plus $300.00 per head recently due to boxed beef prices higher than expected and consumer demand, both domestically and internationally.
Choice Boxed Beef in May did not post a price lower than 226.00 and averaged 229.70 for the month. Packers are selling as much product out front as they can at these elevated levels and are content to harvest as many as they can. Cattle harvest continues to move higher as shown by the four weeks preceding Memorial Day; total weekly cattle slaughter averaged 656.5K, over 53K more than the previous five year average.
This week’s total cattle slaughter was reported at 658K, which would be 22K higher than last year. As more fed cattle move into the slaughter pipeline recently, feedyard pens will need to be refilled quickly to maximize efficiency.
Many early auctions took last week off due to the Memorial Day holiday, however a last Friday auction garnered some steep prices for feeders. At Fort Pierre Livestock in Fort Pierre, S.D., during their 21st Annual WLAC Anniversary Sale, two loads of reputation steers weighing 762 lbs sold at 176.00, while two loads of their similar sized brothers weighing 768 lbs sold at 175.00. A load of bigger brothers that weighed 836 lbs sold at 158.75. In addition, a load of 761 lb bangs vaccinated replacement quality heifers sold at 155.00.
This week on Thursday at Ogallala Livestock Auction in Ogallala, Neb. they hosted their 11th Annual Customer Appreciation BBQ Sale and buyers were in a mindset of own cattle. With a little over 6100 on offer there on Thursday, yearlings were in demand as over a load of steers weighing 905 sold at 143.75 and a half load weighing 902 lbs sold at 144.00. Lack of precipitation has been a concern for many months now and the long-term effects can be devastating to subsoil moisture.
As of this week, approximately 10 percent of corn and soybean production is within an area experiencing drought; winter wheat 33 percent; hay 19 percent and cattle 24 percent.
Auction volume this week included 52 percent weighing over 600 lbs and 41 percent heifers.
Slaughter cattle trades 4.00-5.00 higher on limited offerings. Not enough dressed trades this week in Nebraska for a market test.
Packer demand good.
Boxed Beef prices as of Friday afternoon averaged 214.70 down 1.47 from last Friday. The Choice/Select spread is 23.03. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 22,239 head. Last week’s total head count was 46,883.
Midwest Direct Markets:
Live Basis: Steers and Heifers: few 114.00.
Dressed Basis: Steers and Heifers: N/A.
South Plains Direct Markets:
Live Basis: Steers and Heifers few 115.00.
Slaughter Cows and Bulls (Average Yielding Prices):
Slaughter cows and bulls sold steady to 2.00 higher, with exception of Northern cattle 2.00-3.00 lower. Packer demand moderate to good.
Cutter Cow Carcass Cut-out Value on Friday afternoon was 175.36 down 1.79 from last Friday.
Direct Feeder Cattle
This week Last week 2017
210 110 4328
Compared to last week: Feeder steers and heifers had limited receipts to compare to. The feeder supply included 100 percent over 600 lbs and 21 percent heifers.
Unless otherwise stated prices are FOB weighting points with 2-3 percent shrink or equivalent and a 5-10 cent slide on calves and a 4-12 cent slide on yearlings from base weights. Current sales are up to 14 days delivery.
Feeder Steers Medium and Large 1:
120 Head: Avg Wt 900 lbs; Avg Price 132.00; Current Del
45 Head: Avg Wt 775 lbs; Avg Price 159.00; Aug-Sep Del
Feeder Heifers Medium and Large 1:
45 Head: Avg Wt 750 lbs; Avg Price 149.00; Aug-Sep Del