National slaughter, feeder and stocker cattle report

Calves and yearlings sold $4-10 higher on unbelievable demand and incredibly active trading.

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 27

Compared to June 27: Direct live cattle trade in the South Plains $4-5 higher. Nebraska dressed sales $7 higher. Boxed beef prices June 27 averaged $241.79 that is $4.66 higher than June 20. The Choice/Select spread is $8.56. Slaughter cattle on a national basis for negotiated cash trades through Friday morning totaled about 12,000 head. The previous week’s total head count was 105,072 head.

Midwest Direct Markets: Dressed Basis: Steers and Heifers: $245.

South Plains Direct Markets: Live Basis: Steers and Heifers 35-65 percent Choice, 1100-1400 lbs. $154-155.

Slaughter Cows and Bulls (Average Yielding Prices): Due to summer scheduling the western market will temporarily be Wyoming. Slaughter cows and bulls mostly $1-3 higher. Packer demand remains good. USDA’s Cutter cow carcass cut-out value Friday morning was $212 up $9.39 from June 20.

NATIONAL FEEDER AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

June 27

This week Last week Last year

280,300 228,200 227,700

Compared to June 20: Calves and yearlings sold $4-10 higher on unbelievable demand and incredibly active trading. The market officially surpassed even the wildest of dreams with the largest advance on 6 weight feeders and the least on those weighing over 800 lbs. This week’s bell ringers sound like tall tales, but Bassett, Neb., sold 500-515 lb. steers from $304-310 as yet another milestone was reached. The Northern Livestock Video’s Early Summer Special featured nearly 59,000 head of some of the fanciest cattle that walk outdoors on June 23 and June 24.

Many high-country ranchers are adding value by preserving their cattle’s all-natural status and the stick-out sale was three loads of current delivery all-natural yearling steers weighing 850 lbs. from the Greet Ranch near Ten Sleep, Wyo., which brought a whopping $236. This video was one rare occasion of a large offering in which there was 100 percent sales, with no producers passing their cattle out and/or merely appraising their value.

It was also noted that Montana and Wyoming ranchers are aggressively rebuilding their herds with only 29 percent of sales being heifers and in most consignments the only heifers available were the second cut. The feeder market has now grown to the point that industry members are more fearful of the fall than amazed by the continued rise. The top couldn’t be too far off and we may be several dollars from the peak but perhaps only a few weeks away.

Strings of yearlings will soon be moving off double-stocked pastures in the major grazing regions and the dog days of summer will be upon us right as consumer beef demand suffers its post July 4th hangover.

It’s uncomfortable to discuss the retreat from these all-time record levels, but it’s simply the law of nature. As always, lessons were learned during this awesome rally and they can be filed away for future reference. One is the belief that markets only break record levels for a short time and then retreat back into normal ranges, another is the value of protecting risk through Options rather than a fully hedged position. Many feeder cattle producers wish they had bought a Put and just lost the premium instead of answering margin calls all spring.

The direct fed cattle market also surpassed the all-time record high this week with the Southern Plains blowing by their previous record from late March by $4. Live sales ranged $4-6 higher than last week from $154-156 and dressed sales mostly $7 higher at $245. The week’s reported auction volume included 47 percent over 600 lbs. and 40 percent heifers.

AUCTIONS

This week Last week Last year

151,000 142,700 147,100

WASHINGTON 1,300. 88 pct over 600 lbs. 46 pct heifers. Steers: Medium and Large 1-2 600-650 lbs. $226.60; 650-700 lbs. $216.29; 700-750 lbs. $219.49; 750-800 lbs. $210.13; 800-850 lbs. $187.96; 850-900 lbs. $194.82. Heifers: Medium and Large 1-2 450-500 lbs. $228.36; 550-600 lbs. $222.83; 600-650 lbs. $215.93; 650-700 lbs. $201.36; 750-800 lbs. $197.23; 800-850 lbs. $196.31

DIRECT

This week Last week Last year

52,900 77,100 57,600

SOUTHWEST (Arizona-California-Nevada) 3,200. 2 pct over 600 lbs. No heifers. Steers: Medium and Large 1-2 Current 890 lbs. $196.50 Del. Holsteins: Large 3 October 300 lbs. $246-254 Del; July 325 lbs. $251 Del.

NORTHWEST (Washington-Oregon-Idaho) 4,000. 72 pct over 600 lbs. 24 pct heifers. Steers: Medium and Large 1-2 Current Delivery FOB Price 850 lbs. $196 Washington. Current Delivery Delivered Price: 900-950 lbs. $190.50-197.50 Idaho. Future Delivery FOB Price 500-600 lbs. $223-245 for October-November Idaho-Oregon; 600-650 lbs. $204-225 calves for October-November Idaho-Washington; 700 lbs. $220-223 calves for October Idaho. Heifers: Medium and Large 1-2 Current Delivery Delivered Price 800 lbs. $196 Idaho; 900 lbs. $187.50 Idaho. Future Delivery FOB Price 450-500 lbs. $235 for October-November Idaho; 550-600 lbs. $210-217 for October-November Washington-Oregon; few 550-600 lbs. $198 fleshy for October Washington; 600-650 lbs. $200-218 calves for October-November Idaho.

NORTHWEST DIRECT CATTLE

(USDA Market News)

Moses Lake, Wash.

June 27

This week Last week Last year

4,000 23,250 3,600

Compared to June 20: Feeder cattle steady to $2 higher. Trade slow to moderate. Demand remains very good. The feeder supply included 76 percent steers and 24 percent heifers. Near 72 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 lbs. $196 Washington. Current Delivery Delivered Price: 900-950 lbs. $190.50-197.50 Idaho. Future Delivery FOB Price: 500-600 lbs. $223-245 for October-November Idaho-Oregon; 600-650 lbs. $204-225 calves for October-November Idaho-Washington; 700 lbs. $220-223 calves for October Idaho.

Heifers: Medium and Large 1-2: Current Delivery Delivered Price: 800 lbs. $196 Idaho; 900 lbs. $187.50 Idaho. Future Delivery FOB Price: 450-500 lbs. $235 for October-November Idaho; 550-600 lbs. $210-217 for October-November Washington-Oregon; few 550-600 lbs. $198 fleshy for October Washington; 600-650 lbs. $200-218 calves for October-November Idaho.



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