(Federal-State Market News)

St. Joseph, Mo.

May 31

RECEIPTS:      Auctions      Direct    Video/Internet       Total
This Week       91,200       22,400            18,100       131,700  
Last Week      130,300       45,300             1,000       176,600  
Year Ago       110,900       51,600            15,900       178,400

   Compared to last week, steers and heifers sold steady to 5.00 lower.  Sharp gains 
in the corn and soybean markets have put a damper on feeder cattle gains even though 
last Friday’s Cattle on Feed report was viewed as somewhat bullish due to the 
tempered number of placements when compared to industry guesses.  On Thursday and 
Friday this week, the CME Feeder Cattle futures suffered sharp losses (many contracts 
4.00 or more lower) with the front month August being 10.10 lower this 
week.  September through January contracts were 9.22 to 9.85 lower for the 
week.  Auction receipts were curtailed this week due to the Memorial Day holiday as 
well as widespread moisture throughout the Plains and Midwest.  Reports of rainfall 
in the double-digit inches this week will do nothing but increase river levels.  It 
will test those levees and dams in South Dakota, Nebraska, Kansas, Oklahoma, 
Arkansas, Missouri and Illinois.  These states seem to not be able to catch a break 
this year; inundated with rainfall is not what hay producers need this time of year 
too.  After the last two years of unseasonable cold weather into May, hay stocks have 
been depleted and hay farmers are ready to get to business as well.  Fieldwork has 
come to a halt in many areas after they were able to get in the field for a short 
time.  Corn planting progress is the slowest on record for this time of year and 
soybean acreage planted is reported to be the second slowest on record.  With corn 
gaining up to 50 cents in a week and soybeans 60 to 75 cents higher, analysts are 
trying to figure out how many acres are going the prevented planting route or 
switching from corn to soybeans.  Some in Kansas are moving to sorghum acres and 
still get credit for corn acreage.  Wednesday in the Southern Plains fed cattle 
prices were mostly steady at 115.00, with a few sales in Nebraska at 116.00 as 
packers have gone through inventory over the past couple of weeks and coming back 
from a Holiday shortened week need inventory.  Boxed-beef prices are moving higher as 
beef was showcased in many ads over the Memorial Weekend Holiday.  For the week, the 
Choice cutout closed 1.57 higher at 223.21, while Select was 0.78 lower at 
207.69.  Cattle Slaughter under federal inspection estimated at 582K for the week, 
59K less than last week and 3K less than a year ago.  Auction volume this week 
included 54 percent weighing over 600 lbs and 44 percent heifers. 
Northwest Weighted Average Direct Feeder Cattle 
Weekly Summary WA-OR-ID-UT
May 31
Receipts: 1020      Last Week:  525    Year Ago:  110

   Compared to last week:  Feeder steers and heifers lightly tested with 
a steady undertone noted on the feeder steers. Demand good. Muddy and wet 
conditions across the country and huge packer kills affecting the market. 
Supply consisted of 100 percent over 600 lbs. and 80 percent heifers.  
Unless otherwise stated prices are FOB weighting 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 

                 Feeder Steers Medium and Large 1
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
  200      900       900       128.50         128.50   Current Del   

                Feeder Heifers Medium and Large 1
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
  270      825       825       122.50         122.50   Current Del   
  550      850       850       119.00         119.00   Current Del  

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