National slaughter, feeder and stocker report

Beef exports remain strong with Hong Kong lifting limits on U.S. beef that dated back to the 2004 BSE scare; they are already our third-best volume customer for the year.

Cattle prices in dollars per hundredweight (cwt.) except some replacement animals per pair or head as indicated.

NATIONAL SLAUGHTER CATTLE

(Federal-State Market News)

Oklahoma City-Des Moines

June 20

Compared to last week: Direct live cattle trade in the South Plains $2-3 higher. Nebraska dressed sales steady to $3 higher.

Boxed beef prices June 20 averaged $237.05, up $.27 from June 13. The Choice/Select spread is 7.53. Slaughter cattle on a national basis for negotiated cash trades through June 20 totaled about 87,756 head. The previous week’s total head count was 102,322 head.

Midwest Direct Markets: Live Basis: Steers and Heifers 35-80 Percent Choice, 1200-1400 lbs. $150 Dressed Basis: Steers and Heifers: $237-238.

South Plains Direct Markets: Live Basis: Steers and Heifers 35-65 percent Choice, 1100-1400 lbs. $150

Slaughter Cows and Bulls (Average Yielding Prices): Due to summer scheduling the Western market will temporarily be Utah. Slaughter cows and bulls mostly steady to $1 higher. Packer demand remains good. USDA’s Cutter cow carcass cut-out value June 20 was $203.49 up $.88 from June 13.

NATIONAL FEEDER AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

June 20

This week Last week Last year

228,200 285,500 201,500

Compared to June 13: All classes of feeder cattle and calves closed $3-7 higher after moderating slightly, due to Wednesday’s unexpected limit-down CME Feeder Cattle futures. Earlier in the week, sales were largely $5-10 higher. Thursday’s CME trading session in the feeder cattle pit mostly regained Wednesday’s losses and by Friday there were no signs of weakness in the market, which was likely just profit taking as even the biggest high-rollers feel the need to drag the pot every once in a while.

There still seems to be plenty of helium left in the feeder cattle market balloon and no bearish slingshots have been true enough to threaten the rise. Feeder prices have advanced $40-55 (CME Feeder Cattle Index is 38.61 higher) so far this year, with calves as much as $70 higher through the first six months of 2014.

Earlier this month, the industry was buzzing about 800 lb. steers breaking the $2 per lb. level. On Wednesday, two loads of top quality steers in Green City, Mo., averaged 920 lbs. at $203.15. At the same time, in Kearney, Neb., over 600 head of 800-850 lb. steers averaged 821 lbs. at $213.14, not to mention the gooseneck load of little 239 lb. steer calves that brought $925 per head.

One can only wonder if these quotes wouldn’t have been even more impressive if the feeder board hadn’t been locked down the limit at the time.

The cattle-on-feed report was nailed by industry analysts this month, with June 1 inventories down 1.6 percent from the same time a year ago. May placements were down 7 percent and marketings for May were 95.7 percent of 2013. Beef exports remain strong with Hong Kong this week lifting limits on U.S. beef that dated back to the 2004 BSE scare; they are already our third-best volume customer for the year. Fed cattle sold steady to 2 higher this week with the bulk of sales at $150 on a live basis and some packers putting off delivery until early next month.

Cattle supplies are destined to only get tighter with improved pasture conditions allowing ranchers to increase heifer retention and herds already whittled to a nub. Beef cow slaughter has been running 20 percent or more lighter than last year for the last several weeks. This week’s reported auction volume included 49 percent over 600 lbs. and 41 percent heifers.

AUCTIONS

This week Last week Last year

142,700 154,800 146,200

WASHINGTON 1,800. 84 pct over 600 lbs. 47 pct heifers. Steers: Medium and Large 1-2 650-700 lbs. $205.59; Part Load Thin 807 lbs. $189.50. Heifers: Medium and Large 1-2 700-750 lbs. $183.22; 750-800 lbs. $171.50.

DIRECT

This week Last week Last year

77,100 59,300 49,900

SOUTHWEST (Arizona-California-Nevada) 1,900. No cattle over 600 lbs. No heifers. Holsteins:

Large 3 October 275 lbs. $260 Del.; 300 lbs. $240 Del.

NORTHWEST (Washington-Oregon-Idaho) 23,300. 94 pct over 600 lbs. 17 pct heifers. Steers: Medium and Large 1-2 Current Delivery FOB Price 850-900 lbs. $183.75-192.01 Oregon-Idaho; 900 lbs. $195.68 Oregon. Future Delivery FOB Price 500-600 lbs. $205-230 for September-November Washington-Oregon; 600-700 lbs. $195-215 calves for September-November Oregon-Washington-Idaho; 700-750 lbs. $200-212.65 calves for October-December Idaho-Washington; 800 lbs. $183 calves for November Washington; 900-950 lbs. $181.71 for November Idaho. Future Delivery Delivered Price 700 lbs. $203 calves for October-November Idaho; 850-900 lbs. $203.50 for September-October Idaho; 900-950 lbs. $194-204.10 for September-October Idaho. Holsteins: Large 2-3 Current Delivery FOB Price 350 lbs. $170-180 Washington; 450 lbs. $198.50 Washington. Heifers: Medium and Large 1-2 Current Delivery FOB Price 800-850 lbs. $190.68 Oregon; 850-900 lbs. $177.75 Idaho. Current Delivery Delivered Price 850-900 lbs. $183 Idaho. Future Delivery FOB Price 600-700 lbs. $190-200 calves for October-November Washington-Idaho-Oregon. Future Delivery Delivered Price 750-800 lbs. $192 for September-October Idaho; 850 lbs. $195-201.50 for September-October Idaho.

NORTHWEST DIRECT CATTLE

(USDA Market News)

Moses Lake, Wash.

June 20

This week Last week Last year

23,250 8,900 5,000

Compared to June 13: Feeder cattle steady to $5 higher. Trade very active this week even though the CME feeder cattle contracts on Wed. were limit down. Demand remains very good. The feeder supply included 83 percent steers and 17 percent heifers. Near 94 percent of the supply weighed over 600 lbs. Prices are FOB weighing point with a 1-4 percent shrink or equivalent and with a 5-10 cent slide on calves and a 3-7 cent slide on yearlings.

Steers: Medium and Large 1-2: Current Delivery FOB Price: 850-900 lbs. $183.75-192.01 Oregon-Idaho; 900 lbs. $195.68 Oregon. Future Delivery FOB Price: 500-600 lbs. $205-230 for September-November Washington-Oregon; 600-700 lbs. $195-215 calves for September-November Oregon-Washington-Idaho; 700-750 lbs. $200-212.65 calves for October-December Idaho-Washington; 800 lbs. $183 calves for November Washington; 900-950 lbs. $181.71 for November Idaho. Future Delivery Delivered Price: 700 lbs. $203 calves for October-November Idaho; 850-900 lbs. $203.50 for September-October Idaho; 900-950 lbs. $194-204.10 for September-October Idaho.

Feeder Holstein Steers: Large 2-3: Current Delivery FOB Price: 350 lbs. $170-180 Washington; 450 lbs. $198.50 Washington.

Heifers: Medium and Large 1-2: Current Delivery FOB Price: 800-850 lbs. $190.68 Oregon; 850-900 lbs. $177.75 Idaho. Current Delivery Delivered Price: 850-900 lbs. $183 Idaho. Future Delivery FOB Price: 600-700 lbs. $190-200 calves for October-November Washington-Idaho-Oregon. Future Delivery Delivered Price: 750-800 lbs. $192 for September-October Idaho; 850 lbs. $195-201.50 for September-October Idaho.



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