Feeder Cattle Higher On Moderate Demand
Feeder cattle and calves traded higher for the third consecutive week, with Agricultural Marketing Service reporters calling last week’s trade steady to $2 higher. The lighter weight feeders saw good demand with the heavier weight feeders selling on moderate demand.
AMS noted receipts were higher at auctions last week, with the total about 32,000 head higher than the previous week, mostly on video and internet sales. Year-to-date auction receipts total about 350,000 head more than last year.
Analysts expect feedyards to seek more heavier feeder cattle that will require a shorter stay on feed. Higher grain prices have forced the strategy switch, which some believe will result in a decline in finished cattle quality along with lighter carcass weights.
Friday’s cattle on feed report found on feed numbers 5% higher than a year ago, which was 1% more than analysts expected. April placements totaled 1.82 million head, 27% higher than April 2020. Cattle on feed more than 150 days was trending lower in all regions.
The week’s best news was a total slaughter number of 669,000 head, the largest total of the year. Analysts expect if slaughter can exceed 660,000 head for three of the next four weeks the cash cattle market would be on firmer ground.
NASS reported monthly slaughter data for April, with cattle slaughter totaling 2.85 million, up 27% from last year’s pandemic-reduced total. Beef production totaled 2.35 billion pounds, up 29% over 2020. Year-to-date cattle slaughter is about 4.3% higher than last year and 4.1% over the previous 3-year average. April year-to-date steer carcass weights were at a record high of 907 pounds, 9 pounds more than last year.
CME Live cattle futures closed lower Monday, but off the day’s worst levels. August futures fell 82.5 cents to $120.10 and October was down 87.5 cents to $124.275. August feeders rose 42.5 cents to $154.125.
The market came under pressure on worries the beef market won’t sustain gains and support a stronger cash market this week. However, Choice beef continued to move higher, rising $2.66 per cwt. on Monday to $327.83. Select closed at $303.39, up $1.08 Monday.
