Futures and equity markets were closed on Friday, in observance of Good Friday.
Although Cattle futures firmed at the end of weekly trade, they ended sharply lower week to week, due in part to the previous Friday’s monthly Cattle on Feed report. As mentioned in Cattle Current, feedlot placements in February were 9.7% more year over year and 3.4% more than expected.
Futures also suffered from panic selling earlier in the week that stemmed from confirmation of Highly Pathogenic Avian Influenza in dairy cows (see below).
Week to week on Thursday, Live Cattle futures closed an average of $4.22 lower ($3.37 to $5.07 lower).
Negotiated cash fed cattle prices softened, too. For the week, FOB live prices were $2 lower in the Southern Plains at $186/cwt., steady to $1 lower in Nebraska at $189-$190 and $1-$2 lower in the western Corn Belt at $188-$190. Dressed delivered prices were steady to $3 lower in Nebraska at $299-$302. Dressed delivered prices in the western Corn Belt the previous week were $302.
Choice boxed beef cutout value was $4.00 lower week to week on Friday at $306.72/cwt. Select was $1.96 higher at $303.43. Friday’s Choice-Select spread of $3.29 was the lowest in about two years.
Estimated total cattle slaughter last week of 586,000 head was 12,000 head fewer than the previous week and 59,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 7.7 million head was 473,000 head fewer (-5.8%). Estimated year-to-date beef production of 6.5 billion pounds was 284.5 million pounds less (-4.2%).
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Calves and feeder cattle sold mixed last week amid struggling futures prices and as this year’s grass cattle orders begin to end.
With that said, the only weekly Friday auction I had to report was for Ft. Pierre Livestock Auction in South Dakota where prices were strongly higher compared to two weeks earlier. Steers weighing 700-749 lbs. sold $10-$12 higher and then $3-$6 higher at 750-849 lbs. Heifers weighing 600-699 lbs. sold $8-$12 higher and then $3 higher at 700-799 lbs. There were 4,318 head on offer.
Week to week on Thursday, Feeder Cattle futures closed an average of $7.70 lower ($3.12 to $9.57 lower). Added pressure came from a bounce in Corn futures tied to USDA’s Prospective Plantings report.
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Animal health officials continue to investigate an illness among dairy cows that is causing decreased lactation, low appetite, and other symptoms.
Last Monday, USDA, the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (FDC) confirmed cases of Highly Pathogenic Avian Influenza (HPAI) in dairy cows exhibiting these symptoms. Confirmed cases include two dairy herds in Kansas and two dairy herds in Texas. Later in the week, HPAI was also confirmed in a Michigan dairy herd that recently received cows from Texas. Presumptive positive test results have also been received for additional herds in New Mexico, Idaho, and Texas.
USDA’s National Veterinary Services Laboratories (NVSL) confirmed that the strain of the virus found in Michigan is very similar to the strain confirmed in Texas and Kansas, which appears to have been introduced by wild birds. Initial testing found no changes to the virus that would make it more transmissible to humans. While cases among humans in direct contact with infected animals are possible, this indicates that the current risk to the public remains low.
“There continues to be no concern about the safety of the commercial milk supply because products are pasteurized before entering the market, or that this circumstance poses a risk to consumer health,” according to a statement issued by the Animal and Plant Health Inspection Services (APHIS) on Friday. “Dairies are required to send only milk from healthy animals into processing for human consumption; milk from impacted animals is being diverted or destroyed so that it does not enter the human food supply. In addition, pasteurization has continually proven to inactivate bacteria and viruses, like influenza, in milk. Pasteurization is required for any milk entering interstate commerce for human consumption.”
Spread of symptoms among the Michigan herd also indicates that HPAI transmission between cattle cannot be ruled out, according to the agencies. USDA and partners have advised veterinarians and producers to practice good biosecurity, test animals before necessary movements, minimize animal movements, and isolate sick cattle from the herd. Among the dairies whose herds are exhibiting symptoms, the affected animals have recovered after isolation with little to no associated mortality reported.
“Milk loss resulting from symptomatic cattle to date is too limited to have a major impact on supply and there should be no impact on the price of milk or other dairy products,” according to the APHIS statement.