NATIONAL FEEDER

AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

May 13

RECEIPTS

This Week Last Week Last Year

202,300 244,400 262,100

Compared to last week, feeders under 650 lbs. sold very uneven but mostly 2.00 lower to 2.00 higher, and over 650 lbs. sold steady to 2.00 lower. While the supply of feeders was moderate this week, the amount of heavier weight yearling cattle has been mostly flat the last few weeks.

Demand was moderate to good nationwide this week, with the best demand for those cattle that will reach finished weights this winter.

Turnout time has arrived, which is keeping demand for grass type cattle red hot.

Flesh is a major factor as the first cost of feeder cattle is the most important factor when looking at the end game.

With the CME cattle boards going down most of the week, buyers were selective on what they were to purchase.

The fall Feeder Cattle contracts were under pressure the last couple weeks and have been 8.00 to 9.60 lower in that period.

Cattle producers are bullish on the future as cattle numbers are down but there is apprehension as well as they fully remember the black swan events of the past.

Breakeven costs are higher than the futures markets as producers continue to bet the market will rise.

Auction receipts are dwindling as producers have taken advantage of the high feeder market and sold cattle instead of holding and waiting for a better market.

Rain showers in many areas of the country has finally relieved drought in many areas that have been drought stricken in the past few years.

For the first time in nearly four years, 65% of the country doesn’t have a drought designation.

Cattle feeders were disappointed with the cash fed cattle market this week as they were bullish by thinking they might have a chance at 190.00 this week.

But with a declining boxed beef market packers along with negative margins, packers are trying to keep the market from rising further.

Live sales of negotiated cash fed cattle trade in the Southern Plains sold unevenly steady at 183.00 to 185.00.

In Nebraska, live sales sold steady to 1.00 lower at 186.00 to 187.00, while the dressed sales sold 1.00 higher at 295.00 to 296.00.

Choice boxed beef closed the week 0.37 higher at 294.57 while Select was 3.48 lower at 284.17 for the same period.

Weekly Cattle Slaughter under federal inspection estimated at 622K, the same as last week and 22K less than a year ago.

Auction volume this week included 53% weighing over 600 lbs and 41% heifers.

Northwest Weighted Average Direct Feeder Cattle

Weekly Summary WA-OR-ID-UT

May 10

THIS WEEK LAST WEEK LAST YEAR

256 841 1,725

Compared to last week: Feeder cattle did not have enough comparable sales to establish a trend. Demand moderate Supply included: 100% Feeder Cattle (3.5% Steers, 96.5% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2% shrink or equivalent, with a 10 cent slide >600 lbs. Livestock reported this week originated from ID, OR.

Steers — Medium and Large 1

9 head: 800 lbs, 234.00 Current DEL

Heifers — Medium and Large 1

12 head: 750 lbs; 227.00 Current DEL

115 head: 825 lbs; 221.00 Current DEL

120 head: 900 lbs; 204.00 Current DEL

Northwest Direct — https://www.ams.usda.gov/mnreports/AMS_3059.pdf

Northwest Direct — https://www.ams.usda.gov/mnreports/AMS_3059.pdf