Cattle Current Daily—May 22, 2023

Cattle Current Daily—May 22, 2023

Negotiated cash fed cattle trade was mostly slow on light to moderate demand through Friday afternoon, according to the Agricultural Marketing Service.

For the week, live prices were steady in the Southern Plains at $170/cwt., $2 higher in Nebraska at $178 and $1-$3 higher in the western Corn Belt at $178. Dressed prices in Nebraska were steady to $2 higher at $280-$282.

Stronger cash fed cattle prices in the North, coupled with erosion in Corn futures helped lift Cattle futures again on Friday.

Feeder Cattle futures closed an average of 64¢ higher (17¢ to 77¢ higher).

Live Cattle futures closed an average of 49¢ higher.

Choice boxed beef cutout value was $2.79 higher Friday afternoon at $301.10/cwt. Select was 33¢ higher at $283.94/cwt.

Estimated total cattle slaughter last week of 642,000 head was 4,000 head fewer than the previous week and 15,000 head fewer than the same week last year. Year-to-date estimated total cattle slaughter of 12.6 million head was 423,000 head fewer (-3.3%) than a year earlier. Estimated year-to-date beef production of 10.3 billion pounds was 513.6 million pounds less (-4.7%).

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As alluded to, market bears continued to pressure the grain complex Friday. Faster than average domestic planting, extension of the Black Sea Grain Initiative and China’s continued cancellation of contracts for U.S. corn all fueled bearishness in grain markets during the week.

Corn futures closed mostly 1¢ lower.

KC HRW Wheat closed 25¢ to 32¢ lower through May ‘24 and then 4¢ to 11¢ lower.

Soybean futures closed mostly 6¢ to 11¢ lower.

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Major U.S. financial indices closed lower Friday, dampened by stalled debt ceiling negotiations.

The Dow Jones Industrial Average closed 109 points lower. The S&P 500 closed 6 points lower. The NASDAQ was down 30 points.

West Texas Intermediate Crude Oil futures (CME) closed 25¢ to 39¢ lower through the front six contracts.

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USDA announced confirmation of an atypical case of Bovine Spongiform Encephalopathy (BSE) at a slaughter plant in South Carolina. According to Friday’s announcement, the cow, approximately 5 years old, never entered slaughter channels and at no time presented a risk to the food supply or to human health in the United States. Given the United States’ negligible risk status for BSE, USDA does not expect any trade impacts as a result of the finding.

USDA Animal and Plant Health Inspection Service’s (APHIS) National Veterinary Services Laboratories (NVSL) confirmed the cow was positive for atypical L-type BSE. The animal was tested as part of APHIS’s routine surveillance of cattle that are deemed unsuitable for slaughter.

Atypical BSE generally occurs in older cattle and seems to arise rarely and spontaneously in all cattle populations.

This is the nation’s 7th detection of BSE. Of the six previous U.S. cases, the first, in 2003, was a case of classical BSE in a cow imported from Canada; the rest have been atypical (H- or L-type) BSE.

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Markets will likely view the monthly Cattle on Feed report — feedlots with 1,000 head or more capacity — as neutral.

Placements in April of 1.7 million head were 76,000 head fewer (-4.2%) than a year earlier. That was 0.6% fewer than average estimates ahead of the report.

In terms of placement weights, 35% went on feed weighing less than 600 pounds, 49% weighing 700-899 pounds and 16% weighing 900 pounds or more.

Marketings in April of 1.7 million head were 192,000 head fewer (-10.1%) year over year. That was 0.3% less than pre-report estimates.

Cattle on feed May 1 of 11.6 million head were 414,000 head fewer (-3.4%) than the same time last year, about dead even with expectations.

Year-over-year on-feed numbers May 1 were 10% less in Colorado, 2% less in Kansas, 5% less in Nebraska, 9% less in Oklahoma and 4% less in Texas. Inventory was 5% more in Idaho, 2% more in Iowa and 9% more in Washington.

2023-05-21T17:58:04-05:00

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