Cattle prices lower, but weights also dropping
By John Maday
| Monday, November 23, 2009
Cattle prices lost more ground last week, averaging $82.76 per hundredweight according to USDA, after topping out in the $88 range earlier this month. But there are some positive signs in the market.
Cattle slaughter was up slightly, but live and dressed weights showed week-to-week declines, resulting in total beef production steady with the previous week. The Texas Cattle Feeders Association notes carcass weights have dropped significantly. Steer carcass weights for the week ending November 7 were 23 pounds lighter than at their peak in early October, and 10 pounds those of one year earlier. The tighter supplies could suggest stronger prices, but as their margins continue to decline, packers are holding back on their bids. Last week’s Sterling Beef Profit Tracker showed packer margins improving by about $3 per head for the week ending Nov. 14, but they continue to lose more than $72 per head.
Feeding margins that same week dropped by nearly $40 per head as prices moved lower, resulting in closeouts averaging more than $35 per head in the red.
Wholesale beef prices were generally steady last week, with the Choice cutout averaging $140.10 per hundredweight compared with $139.94 the previous week. Last week’s average was more than 11 percent lower than the $157.40 posted one year ago.
The corn market meanwhile, remains volatile as traders try to guess the effects of the late harvest on corn supplies. Last week’s average
