Stocker And Feeder Cattle Lower As Drought Intensifies
Expanding drought across the Central Plains becomes increasingly evident in cattle markets. Stocker and feeder cattle sold at lower prices again last week, even as demand for grazing cattle was called good in parts of the North Central region.
Agricultural Marketing Service reporters called last week’s auction prices $1 to $4 lower, and that comes after the previous week registered $2 to $5 lower. AMS called steers suitable for grass in the North Central region $1 to $3 higher.
“The rise in feedstuff prices is on the mind of every rancher from the Southern Plains to High Plains to the Southeast,” AMS reporters said. “The current drought map looks much different than that of a year ago. Last year, the map showed no area in the country being in the exceptional drought designation (D4); whereas this year, 9.4% of the country is in that category. The Extreme drought (D3) category currently is at 22.6% while last year was less than 1%. The large grain producing state of Iowa is currently showing over 78% in some type of drought designation. With the runup in grain prices due to concerns over grain ending stocks, substantial rainfall has been spotty this spring and the calendar hasn't turned to summer yet.”
Cash fed cattle prices proved disappointing again last week, with steady prices all around at $118 to $119. Packer margins continue to increase with wholesale beef prices on an historic run higher. Monday’s Choice boxed beef price was $307.52 per cwt., or $9 higher than last week and up about $20 from two weeks ago.
June cattle futures rose $2.20 on Monday to $$118.225 and August cattle gained $1.50 to $120.35. August feeders were up $4.425 to $148.70.
Auction receipts totaled 144,700 head last week, compared with 152,900 the week before, and 182,100 last year.
Estimated cattle slaughter last week was 638,000 head, compared to 475,683 head last year. Total slaughter for the year was 11.592 million head, 4.8% higher than last year.
