AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This Week Last Week Last year
443,600 366,700 570,600
Compared to last week, steers and heifers sold steady to 2.00 higher in the South Central region and steady to 2.00 lower in the Southeast region. Demand was reported from moderate to very good depending on the quality and weighing conditions at auctions in the nation this week. Typical southwest summer weather continues to beat down on the earth in the upper third of the country.
North Dakota is coming off one of the hottest and driest Junes on record and the hay stockpile situation in that area as ranchers buy feedstuffs to hold their herds in drought. On a typical year, hay will move from North to South, however market reporters are already seeing hay moving inverse to a normal year. Cooler temperatures that lasted longer than normal have hampered forage tonnage and that is what is needed to feed ruminant and higher protein feedstuffs are easier to procure to mix with the forage.
Beef cow slaughter persists as over 55% of the country has some sort of drought designation; down near 2% this week. Preliminary data covering the first half of 2021, Year-to-Date heifer and beef cow slaughter is 8% above a year ago, while total cattle slaughter is 6% above a year ago.
For the same period, beef cow slaughter is over 19% more than the previous five-year average as well as the largest number slaughtered (approx. 1.713 million head) in the last 11 years. Contraction of the beef cow herd is indicated with that type of increase in the mature cow and fed heifer slaughter.
The ag economy remains strong as for the seventh straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. The overall index for June fell to a still strong 70.0 from May’s record high of 78.8, with 50.0 being growth neutral.
The Boxed beef value slide has sounded like a broken record for five weeks now and Choice has lost over 65.00 since the first of June. The dog days of summer are upon us with demand shifting to hamburgers and hot dogs.
Choice boxed beef closed the week 10.65 lower at 267.94, while Select was 5.62 lower at 251.79 for the same period. On Friday afternoon, the Choice-Select spread was reported at 16.15.
Negotiated live trading of fed cattle in the Southern Plains sold at 120.00, while dressed sales in Nebraska sold from 196.00 to 202.00. Weekly Cattle Slaughter under federal inspection estimated at 653K for the week, 78K more than last week, and 7K more than a year ago.
Auction volume this week included 54% weighing over 600 lbs and 41% heifers.
Northwest Weighted Average Direct Feeder Cattle
Weekly Summary WA-OR-ID-UT
This Week Last Week Last year
3292 1020 1020
Compared to last week: Steers and Heifers not well tested. Demand good to moderate. Supply included: 100% Feeder Cattle (42.8% Steers, 57.2% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 0% shrink or equivalent, with a 0 cent slide > 600 lbs. Livestock reported this week originated from ID, NV, OR, UT.
Steers — Medium and Large 1
800 Head: 800 lbs, 146.87 Current FOB
2 Head: 780 lbs, 146.00 Current DEL
233 Head: 807 lbs, 148.97 Current DEL
265 Head: 852 lbs, 149.81 Current DEL
110 Head: 825 lbs, 148.62 Aug FOB
Heifers — Medium and Large 1
405 Head: 775 lbs, 138.57 Current DEL
773 Head: 812 lbs, 139.97 Current DEL
149 Head: 860 lbs, 134.36 Current DEL
245 Head: 900 lbs, 127.27 Current DEL
310 Head: 775 lbs, 143.62 Aug FOB