US weekly livestock slaughter remains high

Livestock and poultry slaughter numbers in the US stayed fairly high since last Friday for both fed cattle and hogs.

However, cow kills eased slightly to 24,000 heads from Monday onward (26,000-27,000 before), according to reports.

Fed beef packers reduced their steer/heifer kills to 94,000, 95,000 and 91,000 head respectively last week which raised wholesale prices, but then increased daily kills to a normal" 100,000 earlier this week.

The composite carcass cut-out value of both Choice-grade and Select-grade rose sharply over past three days to 153.6c/lb and 152.4c/lb respectively (up 4.1c/lb and 3.2c/lb from week-ago). However, futures markets did not see such increases holding through summer months.

Reports of feedlot cattle sales were zero since last Friday; animals were apparently held back to see if cash prices might rise above last week's levels averaging 92-94c/lb. This is a wait-and-see game, with beef export trade activity a variable demand factor.

Meanwhile, pork wholesale markets are firm. Pork carcass cut-out value is up 0.7c from week-ago (to 74.7c/lb today) and pork futures contract prices range from 71.6 to 81.0c/lb by June) respectively. Prices indicate confidence for higher prices ahead, hopefully supported by recovery of good export trade to Russia and China.