Fed Cattle
Market ready cattle prices were spurred by a relatively strong futures market and a strengthening in wholesale beef prices.
The Choice cutout was $212.05 down $0.45 from Thursday and down $8.45 from last Friday, while fed cattle trade was $2 to $3 lower than a week ago on a live basis.
Producers are going to have to be a little more savvy in marketing calves and feeder cattle since forward pricing opportunities appear limited.
Drovers recently received an inquiry from a college student conducting research for a public-health class project.
The market is not falling off and disappearing, but rather the market is telling the industry that beef continues to be a highly desirable meat protein.
U.S. beef imports were down 35.2% in December at 186.2 million pounds.
Cattle inventory in Tennessee increased 6.4 percent to 1.83 million head while the beef cow herd increased 2.6% to 896,000 head.
Cattlemen and women gathered today at the 2014 Cattle Industry Convention and National Cattlemen’s Beef Association Trade Show to hear CattleFax market analysts’ projections for the year ahead.
The USDA feeder cattle report for the week ending January 31 confirmed the inventory drop showing cattle and calves nearly 2% lower than last year’s numbers.
How can the beef industry increase the percentage of superior carcasses?
Both packers and feeders are operating with positive margins.
USDA’s January Cattle on Feed report said December placements were down 0.8% while marketings were up 1.1%.
A mountain of meat has ended the longest rally in U.S. cattle prices since at least the 1960s, when baby boomers and McDonald’s Corp. ushered in the American burger boom.
Most analysts and producers would say that feeder cattle and finished cattle have been somewhat undervalued the past several weeks which is likely the leading factor of prices making a small resurgence.
Retailers are not heavily promoting beef at this time and will likely put more of their efforts into turkey and ham the next several weeks.
Cash cattle prices took a drubbing this week with fed cattle prices $4 to $5 lower at $144 to $145 per cwt. Dressed sales were reported $4 to $6 lower at $228 per cwt.
The up and down stock market looks to impact beef demand.
Prices are expected to moderate on calves this fall which means a lower upfront investment when purchasing calves this year relative to one year ago.
This month’s cattle on feed report noted 2.6% more cattle in 1,000 head capacity feedlots than last August 1.
Consumer demand for livestock products continues to be important in determining the pressure on livestock prices in the coming months.
The summer months have resulted in softer prices for wholesale beef, finished cattle, feeder cattle, calves and slaughter cows.
The semiannual cattle inventory report from USDA confirmed that beef cow expansion is continuing.
Beef and fed cattle prices drop from last week.
Beef imports are up, while exports have fallen.
Live cattle prices were up $2 to $3 from the previous week.
Cattle prices fall, while beef prices improve.
Grilling season tends to bring on high beef prices, and this May was record breaker.