All parties upstream of the packing sector are elated, and likely relieved, to see the price break free from the furrow between $120 and $125/cwt that the fed cattle trade had been digging for 19 weeks.
The fourth-quarter seasonal price pattern over five years has seen a 12% increase from September through year end. Weekly carryover must shrink before packers see a supply incentive to move bids significantly higher.
Wholesale beef values continue to fall rapidly in a fall pattern that’s grossly overdue. Much remains in flux in the 2021 market, with record-high seasonal beef values inflated alongside so many other commodities.
Fed cattle prices remain locked within a range of $120 to $125 over a long 16-week period. Market-ready steers and heifers have, in total, been readily available throughout this extensive timeline.
The modern protein buyer has been forced to become accustomed to much higher prices across beef, pork and chicken as price inflation hasn’t waned. Demand outstripping supply seems to be the theme across each sector.
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.
