December 13, 2004

 

 

US Beef, Cattle Prices Pushed Lower

 

Both beef and live cattle prices in the US were pushed lower this week. The weighted average price for the week through Thursday for the five market area at $84.74 per cwt was down $5.12 per cwt for the week. The average carcass price for the five market area was basically the same per cwt from a week earlier at $140.90 per cwt. The range in prices live for the Midwest direct market was $84.00 to $85.50 per cwt with a weighted average of $85.00 per cwt. The range in prices for the high plains was $84.00 was to $85.50 per cwt with a weighted average of $85.00 per cwt.

 

Yield 3 choice beef at $141.90 per cwt Friday morning was down $5.45 from a week earlier. Yield 2-3 beef was down $5.01 per down for the week at $135.80 per cwt Friday morning.

 

Cow slaughter for September through the week ending November 27 was down 17.9% from a year earlier. Dairy cow slaughter for this period was down 21.6% and beef cow slaughter was down 13.2% from 12 months earlier.

 

The odds appear very high that the cattle industry is growing the cow herd at least at a slow rate. However, we will be surprised if the January 1 inventory for 2005 is not close to a year earlier.

 

The record high feeder cattle prices along with feed supplies both forage and grain are providing the incentive to build the cattle inventory.

 

400-500 pound steer calves at Oklahoma City this week were about $15 per cwt above a year earlier and 700-800 pound yearlings was about $7 per cwt above 12 months earlier.

 

A portion of these stronger feeder cattle prices is due to lower grain and protein prices.

 

The prices for replacement cows in recent weeks are substantially stronger than at the start of the year.

 

For example the week of January 7 this year 4-6 year old cows bred 6-7 months weighing 1,100-1,250 pound of high quality sold for $750 to 785 per head at Oklahoma City. This week some 4-6 year old high quality cows weighing 1100-1300 pounds bred 6-7 months sold for $980 to 1,010 per head at the same market.

 

Feeder cattle and calves weighing over 575 pounds were $2 to 5 per cwt lower this week at Oklahoma City. The prices by weight groups for medium to large frame number 1 steers for Oklahoma City were: 400-500# $123.25-145 per cwt, 500-600# calves $116-134, 600-700# calves $104.50-116.50 per cwt, 700-800# calves $99.50-107.25, 600-650# yearlings $110-116.50, 700-800# yearlings $105-110.50, and 800-1000# $97.25-107.

 

Slaughter this week under Federal Inspection was estimated at 627 thousand head up, 4.1% from a year earlier.