Expansion is a multi-faceted question for beef producers that are in the position to do so. Expectations about future returns relative to the cost of purchasing or retaining a replacement cow or heifer are often the first question to be addressed. Included in that decision are expectations about pasture availability in the future as some areas continue to recover from drought.
Compared to last week, yearlings sold fully steady to 3.00 higher with instances 5.00 higher as advance continues to be on heavy yearlings over 800 lbs. Demand remains very good on yearlings as the draw of steady fed cattle prices on light trade Wednesday in Kansas at 161.00 continues to bring additional interest back to feeder cattle.
USDA's May Cattle on Feed report said placements were down 4.6% in April and marketings were down 7.8%. That made the May 1 on feed number up 0.8% from a year ago. Marketings were close to trade expectations, but placements were lower.
Kansas feedlots, with capacities of 1,000 or more head, contained 2.11 million cattle on feed on April 1, according to the USDA’s National Agricultural Statistics Service.This inventory was up 1 percent from last year.
US dollar strength once again weighed on the commodity sector Friday. A relatively high reading for Core-CPI on a Friday morning report sent the U.S. dollar higher, which in turn undercut the commodity markets. Actually, it wasn’t terribly surprising to see the corn setback, since the market had risen rather significantly lately despite generally bearish fundamentals, especially with the long weekend looming. July corn futures sank 5.0 cents to $3.60/bushel at Friday’s close, while December dipped 4.5 to $3.7775.
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on May 1, 2015. The inventory was 1 percent above May 1, 2014.