National Feeder Cattle Report: Steady Prices, Oppressive Heat
07/23/2010 03:23PM
Bookmark
Compared to last week, feeder cattle and calves sold steady with only a few market variations from status-quo which were mostly due to specific conditions in particular areas of the country. Oppressive heat across much of the United States over the weekend and early into the work-week made marketing difficult, with most livestock movement heading toward the shade. Significant deathloss was reported in the Kansas feedlot area in addition to scattered stories of auction cattle perishing en-route to the feedyard. Weight gains over the last ten days in the central portions of the country would be minimal or negative as heat stressed cattle panted in huddled masses or stood in ponds in effort to escape the heat. Buyers still demanded cattle of every class, but the conditions of the available offerings wavered and caused price trends to be uneven. The bulk of the grass yearlings were delivered this week in the Kansas Flint Hills Region with the majority of these cattle tipping the scales from 850-950 lbs, even though slides may have been placed from 800-850 lbs when contracts were written. The heavy movement of these big yearlings pressured the market for these types in the local auctions with trends from weak to 2.00 lower. Land owners of the vast pastures in the Flint Hills will now let their grass rest through the driest part of the summer and up until early next spring’s burn-off when they will once again lease and double-stock their land. The best demand for feeders this past week was for the hard-to-find lightweight yearlings weighing under 750 lbs which have ample time to cheapen-up on discount feed and better hedging opportunities for year’s end.
The lightest demand was shown for unweaned fall-born calves weighing over 600 lbs which could melt and have health challenges in current temperatures. Industry analysts once again nailed USDA’s cattle-on-feed estimate with July 1st totals at 103.3 percent of the same time last year. However, the report had a slight bullish feel despite June placements coming in 17 percent higher than 2009, (but remember last year’s light June placement was only 91.6 percent of 2008). Some number crunchers had pegged this year’s headcount of new feeders going into the feedlot during June well over 25 percent more than last year.
June fed cattle marketings were slightly less than predicted at 100.4 percent of a year ago. The fat cattle market continued its dog day rally this week gaining another 1.00-2.00 with most live sales at 95.00. Some showlists reportedly feature cattle that are a full month ahead of schedule; which is one thing during cool and moderate weather when cattle are gaining their heads off – and a complete other when heat indexes are over 100 degrees. Beef cattle at every level of production continue to be pulled ahead and the mid-year inventory report quoted the total US herd size and calf crop 1.2 percent smaller than last year. This week’s reported auction volume included 44 percent over 600 lbs and 42 percent heifers.
Source: USDA/AMS, Corbitt Wall/OIC, Lana Davis, Greg Harrison, Market Reporters