NATIONAL FEEDER

AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

June 5

RECEIPTS

This Week Last Week Last Year

134,100 217,800 150,300

Compared to last week, steers and heifers in the North and South-Central areas sold 7.00 to 12.00 higher, while the Southeast were 2.00 to 6.00 higher.

Demand was good to very good on lighter auction receipts for the week of Memorial Day. Fundamentals came into play this week as the industry has finally awoken to a shortage of cattle in the country when compared to normal. The CME Cattle Complex had no choice but to move higher to follow the cash fed cattle and auction feeder cattle. Lack of supply in the cattle world is driving the demand to a point where feedyards are having to stay in the game to keep feedyards full.

There are many BBQ specials planned this summer and when those do happen, exceptional cattle in quality and condition will ring the bell. On Friday at Ft Pierre (SD) Livestock Auction, some 6-weight steers have now reached 300.00 or more. This week alone the fall Feeder futures were 8.00 to 9.00 higher while they were 19.00 to 2.00 higher than 4 weeks ago.

Front month June Live Cattle was over 9.00 higher this week and near 15.00 higher than a month ago.

Many producers in cow-calf states have looked at the balance sheet and have been marketing calves sooner rather than later at this point. They are taking the opportunity to reap rewards at these price levels and/or lack of feed leaves no incentive to hang on longer than necessary. Producers will have been selling more cows in hopes of keeping a little more grass.

Overall hay production so far has been disappointing so far this year, however there are some areas that have been fortunate to catch a few pop-up showers.

Negotiated fed cattle prices are at a record high again this year. Packers continue to seek out cash cattle to fill slaughter needs. Nebraska dressed sales sold 5.00 to 6.00 higher from 285.00 to 292.00 and live sales sold 3.00 to 6.00 higher from 183.00 to 188.00 with a few up to 190.00. Sales in Kansas sold 7.00 to 9.00 higher from 178.00 to 180.00 and TX/OK/NM sold 5.00 to 7.00 higher at 175.00-178.00.

Choice boxed beef closed the week 6.00 higher at 309.93, while Select was 6.01 higher at 290.93 for the same period. The Weekly Cattle Slaughter under federal inspection estimated at 573K for the week, 52K less than last week, and 35K less than a year ago.

Auction volume this week included 48 percent weighing over 600 lbs and 45 percent heifers.

Northwest Weighted Average Direct Feeder Cattle

Weekly Summary WA-OR-ID-UT

June 2

This Week Last Week Last Year

493 240 255

Compared to last week: Not enough to compare trends, however a definite higher undertone is noted. Demand is very good. Supply included: 100% Feeder Cattle (48.7% Steers, 51.3% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2-3% shrink or equivalent, with a 4-8 cent slide >600 lbs. Livestock reported this week originated from ID.

Steers — Medium and Large 1

240 Head: 950 lbs, 186.00 Current DEL

Heifers — Medium and Large 1

13 Head: 800 lbs, 192.00 Current DEL

240 Head: 950 lbs, 177.00 Current DEL