Cattle Outlook: Fed cattle, boxed beef prices higher

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

The September cattle on feed report said placements into large feedlots during August were 10% lower than for any August since USDA began the current data series in 1996. August marketings were down 3.7% due to one fewer slaughter day. Steer and heifer slaughter during August was down 5.4% compared to 12 months earlier. The number of cattle on feed at the start of September was down 7.2% from a year ago and the lowest for any September since 2003.

A fire on Thursday has closed the Creekstone slaughter plant in Arkansas City, Kansas for an indefinite period.

The crop condition report for September 22 said 55% of corn acres were in good or excellent condition. That was up 2 percentage points from the month before and up 31 points from a year ago. The pasture condition report rated 36% of U.S. pasture acres as poor or very poor. That was 1 percentage point less than the week before and 20 points less than a year ago.

USDA’s September Cold Storage report said stocks of frozen beef on August 31 were down 6.2% from a month earlier, but up 0.2% from a year ago. Beef stocks are the lowest of any month since November 2012.

Fed cattle prices were higher this week with very light sales volume. Through Thursday, the 5-area average price for slaughter steers sold on a live weight basis was $124.31/cwt, up $1.61 from last week and up $1.85 from the same week last year. Steers sold on a dressed basis averaged $195.24/cwt this week. That is $4.25 higher than a year ago.

This morning, the boxed beef cutout value for choice carcasses was $192.85/cwt, up 40 cents from the previous Friday and up $3.55 from a year ago. The select carcass cutout is at $176.91/cwt, up 80 cents for the week, but down $1.34 from the same day last year.

This week's cattle slaughter totaled 632,000 head, down 0.2% from last week and down 2.6% from a year ago. The average steer dressed weight for the week ending on September 14 was 867 pounds, down 5 pounds from the week before and down 2 pounds from a year ago.

Oklahoma City feeder cattle auction prices this week were steady to $2 higher for steers and heifers with prices for medium and large frame #1 steers: 400-450# $186-$197, 450-500# $192-$197, 500-550# $169-$192.50, 550-600# $155-$168.50, 600-650# $150-$171, 650-700# $149.50-$172, 700-750# $150-$167, 750-800# $153.50-$161.50, 800-900# $150.25-$158.50, and 900-1000# $141-$149.75/cwt.

The October live cattle futures contract closed at $128.25/cwt today, up $2.30 from last week’s close. December fed cattle settled at $132.07, up $2.32 for the week.

The October feeder cattle futures contract ended the week at $164.12/cwt, up $3.90 from the previous Friday. November feeders settled at $164.92, up $4.17 for the week.

Source: Ron Plain and Scott Brown



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Caterpillar D Series Skid Steer and Compact Track Loaders

Introducing D Series Skid Steer and Compact Track loaders, more than just Tier IV emissions upgrade. New cab, lift arm, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight