Paul Dykstra

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Last week’s fed cattle trade was highlighted by sales late Friday that featured substantially higher prices as packer demand for spot market cattle pressed prices higher in all regions.
Total beef cattle harvest last week was up 12,000 head from the prior week at 578,000 head, 6,000 head fewer than the same week last year.
Total beef cattle harvest last week was slightly larger than the prior week at 563,000 head, an increase of 2,000 head.
In the last two weeks the average weekly fed cattle harvest total has been 480,000 head, a total reduction of 30,000 head (-3%) over the two-week span compared to a year ago.
Live Cattle and Feeder Cattle futures prices have been forced higher as Live Cattle contracts had been lagging negotiated values until recent days.
Now in mid-January, the cattle markets are showing exceptional optimism. Packers were actively bidding to capture spot market needs.
Last week’s federally inspected cattle harvest was 5,000 head smaller than the prior week and 38,000 head smaller than the same week a year ago. A large contribution gap between classes of cattle in the harvested total remains in place.
Calf and feeder cattle prices have been much more active in the past three weeks with two market-moving events, including precipitation in the central states and the temporary closure of the southern border due to screwworms.
Last week’s harvest averaged 100,000 with except of Veteran’s Day holiday. Feeder cattle demand elevated after widespread precipitation throughout much of the winter wheat grazing region.
Cattle harvest was down last week, but carcass weights remain record breaking. Q4 tends to be the period most prone to follow historical seasonal patterns for carcass cutout prices.