Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Last Friday’s Cattle on Feed report was neutral to bullish as placements came in at the lower end of trade estimates. The number of cattle in feedlots over 1,000 head on December 1 was estimated to be 11.7 million, which was 2.1% lower than a year ago. Cattle placed in feedlots during November totaled 1.54 million head, 11% less than the same month last year. The Mexican border was closed to cattle imports in late November last year, which accounts for some of the decline. Wholesale beef prices were higher as well, averaging $361.63, propelled by a $4.35 jump on Friday. The Five Area Weekly average for beef breed steers was $227.96, 25 cents lower than the prior week. Muddy pen conditions, especially in Iowa and Nebraska, caused some feedlot operators to accept lower bids. No sales were reported in the South due to confidentiality. Steer weights matched the record high of two weeks ago. Packers will rely partially on previously purchased cattle to meet their needs during the shortened holiday weeks. The estimated harvest total of 587,000 was 9,000 fewer than the prior week and 29,000 fewer than last year. Fifty percent of the harvest was fed steers with 31.4% made up of fed heifers. Cow harvest continues lower than last year’s levels and were 17.1% of the total.
Leave a Reply