(Federal-State Market News)

St. Joseph, Mo.

May 3

RECEIPTS:      Auctions      Direct    Video/Internet       Total
This Week      207,900       51,600            38,000       297,500
Last Week      193,900       73,300             1,300       268,500
Year Ago       250,300       65,000            61,000       376,300

   Compared to last week, steer and heifers sold in a wide range of steady to 7.00 
lower, with some instances being quoted 10.00 to 12.00 lower on some of the lighter 
weight steers.  Grass cattle demand has subsided as ranchers are taking stock of what 
is going on in Chicago.  CME cattle futures continued to close in the red this week 
and all market participants are standing up and taking notice.  The erosion of equity 
on the balance sheet the last couple weeks is enough to make one shudder at the 
thought.  The loss of $100 per head or more on a 750 lb steers in the matter of two 
weeks makes one wonder just what the heck is going on fundamentally.  The May Feeder 
Cattle Contract has dropped 14.37 in the past two weeks after topping at 151.52 the 
Thursday before Good Friday.  True hedgers are looking in their brokerage account, 
liking the basis right now and have not been afraid to take the basis money and sell 
the cattle all in one fell swoop.  Fed cattle sellers in the Southern Plains traded 
on Tuesday this week 3.00 to 4.00 lower at 122.00 to 123.00 on live 
transactions.  Northern Plains sellers sold at 200.00 dressed, 5.00 lower than last 
week.  Willing sellers made for volume this week as this week’s tally will be the 
largest 5-Area volume (around 125K) since the late October 2018 when it was almost 
131K.  The next sixty days are when some of the best meat consumption occurs in the 
US and we will see how much is needed to satisfy our markets both domestic and 
abroad.  Boxed beef is lower this week and with large supplies of beef that needs to 
be cleaned up.  For the week, the Choice cutout closed 5.78 lower at 227.36, while 
Select was 6.29 lower at 213.29.  Cattle Slaughter under federal inspection estimated 
at 670K for the week, 27K more than last week and 18K more than a year ago.  If the 
670K is realized, it will be the largest FIS Cattle Slaughter since w/e October 29, 
2011 (672,372).  That was several years ago prior to many fed cattle and mature 
cattle plants closing.  Auction volume this week included 50 percent weighing over 
600 lbs and 46 percent heifers.

Auctions Receipts:  207,900    Last Week 193,900    Last Year 250,300
Northwest Weighted Average Direct Feeder Cattle 
Weekly Summary WA-OR-ID-UT
May 3
Receipts: 125 
Last Week: 3,680
Year Ago: 1,610 Compared to last week: Feeder steers and heifers too lightly tested for accurate trend. Demand moderate. Supply consisted of 100 percent over 600 lbs. and 60 percent heifers. Unless otherwise stated prices are FOB weighing points with 2-3 percent shrink or equivalent and a 5-10 cent slide on calves and a 4-12 cent slide on yearlings from base weights. Current sales are up to 14 days delivery. Feeder Steers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Delivery 50 850 850 130.00 130.00 Current Del Feeder Heifers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Delivery 75 850 850 125.00 125.00 Current Del

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