June 15, 2012

US records US$2 billion cattle production value in five states

Five US' states had a 2011 value of cattle production in excess of US$2 billion of which the total for the US was a record US$45.176 billion, up US$8.2 billion from the year before, as stated in USDA's annual publication "Meat Animal Production, Disposition and Income.

USDA says 72% of the corn crop was in good or excellent condition on June 3. That compares to 72% good or excellent the week before and 67% a year ago. The Crop Progress report says 94% of the soy crop was planted by June 3 compared to an average of only 75% on that date. Nationally, 22% of pastures were rated poor or very poor in early June. That compares to 22% poor or very poor the week before and 24% a year ago.

Forecasts of continued dry weather in the southern Corn Belt boosted corn futures this week. July corn futures ended the week at US$5.98/bushel, up US$0.47 from the previous Friday (June 8). December corn settled at US$5.44/bushel, up US$0.34 for the week.

This week's beef carcass cut-out value was lower. On Friday morning, the choice boxed beef carcass cut-out value was US$197.26/centum weight (cwt), down US$0.09 from the previous Friday. The select carcass cut-out was down US$3.11 from the previous week to US$182.71/cwt of carcass weight. The choice-select spread is now US$14.55/cwt, the most since December 30.

Fed cattle prices were slightly higher this week. Through Thursday (June 7), the five-area average price for slaughter steers sold on a live weight basis was US$122.79/cwt, up US$0.89 from last week and up US$16.59/cwt from the same week last year. Steer prices on a dressed basis averaged US$195.58/cwt this week, up US$0.80 from a week ago and up US$22.06 from a year ago.

This week's cattle slaughter totalled 652,000 head, up 9.4% from the week before (which was light because of Memorial Day) but down 4.3% from a year ago. The average dressed weight for steers for the week ending on May 26 was 839 pounds, down two pounds from the week before, up 19 pounds from a year ago, and above a year earlier for the 20th week in a row. Year-to-date beef production is down 2.8%.

Fed cattle futures ended the week higher. The June live cattle contract settled at US$119.87, up US$2.17 from the previous Friday. The August contract gained US$1.22 this week to end at US$120.82. October ended the week at US$125.25 and December at US$128.62/cwt.

The August feeder cattle contract settled at US$159.37/cwt, up US$2.30 from the previous Friday. September feeder cattle gained US$1.85 this week to close at US$160.52. October settled at US$161.45/cwt.