Total cattle slaughter for this year surpassed the previous year’s year-to-date total last week.
Estimated total cattle slaughter last week of 659,000 head was 15,000 more than the previous week and 10,000 head more than the same time last year. Estimated total year-to-date cattle slaughter of 7.76 million head was 2,000 head more year over year.
Estimated year-to-date beef production of 6.51 billion lbs. was 20.9 million lbs. more (+0.3%) than the same time last year.
Those numbers speak to apparently mostly recovered packing capacity and the massive numbers of cattle on feed. Judging by the latest Cattle on Feed report (see below), increased production will continue in the near term.
Negotiated cash fed cattle trade was limited on light demand in all major cattle feeding regions through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Live prices last week were steady in the Southern Plains and Nebraska at $138/cwt. and steady to $1 lower in the western Corn Belt at $139-$142. Dressed prices were steady in Nebraska at $221 and steady to $1 lower in the western Corn Belt at $221.
Feeder Cattle futures closed an average of 88¢ lower Friday (35¢ to $1.17 lower), pressured by grain futures and perhaps some prescient trepidation about the Cattle on Feed report (see below).
Corn futures closed mostly 2¢ to 3¢ higher, while Soybean futures closed mostly 3¢ to 7¢ higher.
Live Cattle futures closed an average of 45¢ higher in the front four contracts and then an average of 12¢ lower, except for 12¢ higher in away Apr.
Choice Boxed beef cutout value was 23¢ higher Friday afternoon at $262.64/cwt. Select was 45¢ lower at $252.14. Week to week, Choice was $4.48 higher and Select was $1.49 higher.
******************************
Major U.S. financial indices closed the week mainly higher Friday.
The Dow Jones Industrial Average closed 153 points higher. The S&P 500 closed 22 points higher. The NASDAQ was down 22 points.
******************************
Cattle markets likely will start the week on a dour note, pressured by USDA’s monthly Cattle on Feed report issued Friday (feedlots with 1,000 head or more capacity).
February placements of 1.85 million head were a staggering 9.3% more (+157,000 head) year over year. That was 3% more than average analyst estimates ahead of the report, underscoring expanding drought impacts.
In terms of placement weights, 37.1% went on feed weighing 699 lbs. or less, 52.6% weighing 700-899 lbs. and 10.3% weighing 900 lbs. or more.
Marketings in February of 1.82 million head were 4.9% more (+86,000 head) than the prior year, which was 0.6% more than estimated ahead of the report.
Cattle on feed March 1 of 12.16 million head were 1.4% more (+163,000 head) than the same time last year. That was 0.3% more than expectations and the most on feed for the date since the data series began in 1996.