NATIONAL FEEDER & STOCKER CATTLE SUMMARY – WEEK ENDING 05/11/2024

By USDA-MO Dept of Ag Market News

RECEIPTS: Auctions Direct Video/Internet Total

This Week: 146,400 48,000 7,900 202,300

Last Week: 145,300 42,000 57,100 244,400

Year Ago: 173,900 45,400 42,800 262,100

Compared to last week, feeders under 650 lbs. sold very uneven but mostly 2.00 lower to 2.00 higher, 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 remains on 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.