Last week’s fed cattle slaughter was curtailed due to infrastructure issues at two packing plants. The steer and heifer head count on Wednesday was just 86,000 head, followed by 90,000 head on both Thursday and Friday.
The sideways trade in the fed cattle market continues as the weekly average price last week is yet again $123/cwt. This marks the 10th week in a row with live fed steer values averaging between $120/cwt. and $125/cwt.
This summer many of us have had our eyes on carcass weights, grading trends and days on feed as related to the fed cattle sector. These factors have been on abnormal paths since the onset of the pandemic and backlog.
The estimated weekly slaughter total last week was 623,000 head, a significant reduction from the prior week, thanks, in part, to the three-day weekend.
Weekly slaughter head counts are key data points gauging feedyard currentness and record boxed beef values this spring. Outcomes in those two, while both dependent on slaughter rate, are working at odds with each other.
Cash fed cattle prices were lower $1 to $2/cwt. last week, arriving at an average just below $121/cwt. Futures weakness brought prices lower, despite the severe upward trajectory of carcass cutout values.
Cattle and beef markets have been a flurry of activity since the last CAB Insider with many positive market indicators sending fed cattle and cutout values rapidly higher.
Federally inspected weekly slaughter has fallen in the past three weeks 20,000 to 25,000 head below late Feb. and early March levels. Cleaning and plant maintenance is the primary factor for the smaller head counts.
