Negotiated cash fed cattle trade finished the week generally $7-$10 lower, depending on the region, at $112 to $117/cwt. Dressed prices were $4 to $10 lower than the previous week at $180-$185.
Choice wholesale beef value softened a bit on Friday with moderate offerings and light to moderate demand, according to the Agricultural Marketing Service. Choice boxed beef cutout value was 47¢ lower Friday afternoon at $232.21/cwt. Select was 22¢ higher at $208.46.
Select and Choice rib, chuck, and round cuts traded steady to weak, while loin cuts sold firm to higher. Beef trimmings sold generally steady on moderate demand and offerings.
Cattle futures closed lower on Friday, but choppiness early suggested a plumbing for bottom rather than free-fall. Profit taking likely added pressure, overall, while surging corn prices added squeeze to Feeder Cattle.
Other than 12¢ lower in the back two contracts, Live Cattle futures closed an average of 56¢ lower.
Feeder Cattle futures closed an average of $1.17 lower (87¢ to $1.42 lower).
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Major U.S. financial indices closed little changed on Friday, amid ongoing pressure from rising interest rates and ongoing uncertainty surrounding trade talks between the U.S. and China.
The Dow Jones Industrial Average closed 1 point higher. The S&P 500 closed 7 points lower. The NASDAQ closed 28 points lower.
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“With the expansion of the cattle herd in 2016 and 2017, heifers were being retained at a higher rate than normal,” say analysts with the Agricultural Marketing Service (AMS). “The 2018 January to April heifer slaughter compared to total fed cattle slaughter is calculated at near 35.5%, while the same calculation for 2016 and 2017 was 33.2-34.0%. This would generally indicate a stable herd size. This indicator could change if the heart of cattle country gets encompassed by more drought conditions this summer.”
Based on the most current data from the World Agricultural Outlook Board, AMS analysts say about 23% of the nation’s cattle inventory is in areas currently experiencing drought.
According to the season’s first rating, pasture and range is off to a poorer year-over-year start.
For the week ending May 13, according to USDA’s Crop Progress report, 43% of pasture and range was rated in Good (37%) or Excellent (6%) condition, compared to the previous year’s historically higher 72%. 20% is rated as Poor (15%) or Very Poor (5%) compared to 10% last year. That’s the worst first week of the reporting season since 2014, according to the Livestock Marketing Information Center (LMIC).
States with the most pastures and range in Poor or Very Poor condition include: Arizona (100%); New Mexico (66%); Kansas (31%); Virginia (31%); Missouri (30%); Colorado (29%); North Dakota (28%); Texas (28%); California (25%); Oklahoma (23%); West Virginia (22%); Florida (21%).