Cattle Outlook: Freezers Losing Beef

Farm Journal logo

Cold storage across the U.S. is seeing less and less beef, along with pork, chicken and turkey.
By: Ron Plain and Scott Brown, University of Missouri

USDA's September Cold Storage report said there were 343.7 million pounds of beef in cold storage at the end of August. That is 6.2% less than the month before and 20.1% less than a year earlier. This is the lowest frozen beef stocks for any month since July 2005. Seasonally, beef stocks tend to increase from August to year's end.

The meat supply is very tight. Compared to August 31, 2013, pork in cold storage was down 0.5%, chicken was down 13.1% and frozen turkey was down 15.0%.

The Commerce Department revised upward their estimate of second quarter growth. They now say the nation's GDP increased by 4.6% in April-June. Faster growth is good news for meat demand.

Boxed beef cutout value was lower this week. The cutout value for choice carcasses this morning was $238.19/cwt, down $6.35 from last Friday, but $45.74 higher than a year ago. The select cutout was $225.44/cwt on today's morning report, down $5.20 for the week, but $49.33 higher than a year earlier.

Fed cattle prices declined this week on light volume. Through Thursday, the 5-area average price for slaughter steers sold on a live weight basis were $153.12/cwt, down 63 cents from last week's average, but up $28.81 compared to a year ago. The 5 area average dressed price for steers lost $3.23 this week to $242.00/cwt, which is $47.05 higher than last year.

Cattle slaughter totaled 572 thousand head, up 0.2% from the week before, but 8.5% fewer than the same week last year. This was the 30th consecutive week that cattle slaughter has been below the year-ago level.

The average dressed weight for steers slaughtered the week ending September 13 was 889 pounds, unchanged from the week before and 22 pounds heavier than the same week last year. This was the 13th consecutive week with weights above year-ago and the biggest year-over-year increase in steer carcass weights since the first week of 2013.

Feeder cattle prices were mostly steady on heavier weights and lower on calves this week at Oklahoma City. This week's price ranges for medium and large frame #1 steers by weight group were: 400-450# $280-$305, 450-500# $262-$313, 500-550# $250-$270, 550-600# $225-$260, 600-650# $230-$260, 650-700# $223-$245, 700-750# $217.50-$247.50, 750-800# $210.50-$238.50, 800-900# $211-$229, and 900-1000# $200.50-$214.50/cwt.

The October live cattle futures contract closed at $158.45/cwt today, up $2.83 on the week. December fed cattle settled at $162.10/cwt, up $3.40 for the week. The February contract ended the week at $162.00/cwt.

The October feeder cattle contract gained $4.38 this week to end at $233.10/cwt. November feeders closed at $231.60/cwt, up $5.28 for the week. The January feeder cattle contract ended the week at $226.17/cwt.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.