NATIONAL FEEDER

AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

May 15

RECEIPTS

This Week Last Week Last Year

262,100 265,700 196,200

Compared to last week, steers and heifers in the Southeast and North Central areas were steady to 3.00 higher, while those in the South Central was steady to 3.00 lower. Demand was moderate to good. Many producers have continued to bring calves to town earlier than usual as prices remain good even if they aren’t at the same levels as a few weeks ago. Large if not huge runs of cows came to auctions this week in cow-calf states as ranchers look to conserve grass in any way they can. Moods are more optimistic as this week begins as rains have finally fallen for most everyone in the state.

Although amounts varied and cells have been spotty nearly everyone has received some the last week. Looking at the moisture maps, areas in the central part of the U.S. received rainfall in the inches categories however, still not enough to break the drought. Issues of dryness and short grass do not just go away overnight, and no one wants to push short pastures before summer actually arrives. Rainfall over the last week in the Panhandle of Nebraska totaled over eight inches in places and has been a welcome sight.

Market watchers are paying very close attention to how many cows have been harvested this spring. Ranchers can’t afford to keep a freeloading cow around another year and a half before they get a return off her.

Expenses don’t seem to be slowing down at this point so the pencils have to be sharpened for the ranchers moving forward. Preliminary Cattle slaughter numbers through April Year-to-Date show steer harvest near 5 pct less than a year ago, while heifer slaughter rate is slightly larger than a year ago. Beef cow harvest is down 11 pct YTD from a year ago after being 15 pct higher the previous year’s YTD.

Cattle feeders that are hedged still have a positive basis, although the basis narrowed some this week, it seems likely the basis will narrow through May. This time period mow through the 4th of July has always been a good time for grilling and beef consumption with Mother’s Day, Father’s Day, graduations and Memorial Day all coming fast upon us.

This week, the CME Cattle Complex gained back around 80 pct of the losses of the previous week.

Something greatly needed as the negotiated cash fed cattle continues to slide lower. Negotiated fed cattle sale in the Southern Plains sold 2.00 lower at 170.00, while dressed sales in Nebraska sold 1.00 lower at 280.00. Live sales in Nebraska sold steady to 2.00 lower from 175.00 to 179.00. Choice boxed beef closed the week 4.58 lower at 304.61, while Select was 3.48 lower at 284.68 for the same period.

The Weekly Cattle Slaughter under federal inspection estimated at 646K for the week, 23K more than last week, and 5K less than a year ago. Auction volume this week included 48 percent weighing over 600 lbs and 44 percent heifers.

Northwest Weighted Average Direct Feeder Cattle

Weekly Summary WA-OR-ID-UT

May 12

This Week Last Week Last Year

1725 65 375

Compared to last week: First reported FOB trades in a few weeks so a market trend is not applicable. However, a steady undertone was noted. Demand has been good in this area for cattle headed to the feedlot. Supply included: 100% Feeder Cattle (94.2% Steers, 5.8% Heifers). Feeder cattle supply over 600 lbs was 93%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2-3% shrink or equivalent, with a 8 cent slide >600 lbs. and 10 cent slide <600 lbs. Livestock reported this week originated from CA, ID, UT, WY.

Steers — Medium and Large 1

55 Head: 925 lbs, 185.50 Current FOB

120 Head: 540 lbs, 177.50 Current DEL

100 Head: 950 lbs, 175.00 Current DEL

1350 Head: 750 lbs, 212.50 Aug DEL

Heifers — Medium and Large 1

100 Head: 900 lbs, 170.00 Current DEL