NATIONAL FEEDER & STOCKER CATTLE SUMMARY – WEEK ENDING 02/03/2024

By USDA-MO Dept of Ag Market News

RECEIPTS: Auctions Direct Video/

Internet Total

This Week: 286,500 52,600 6,200 345,300

Last Week: 257,600 47,500 48,100 353,200

Year Ago: 147,900 31,100 49,400 228,400

Compared to last week, steers and heifers in the Southeast sold 9.00 to 14.00 higher, while other regions sold 5.00 to 10.00 higher. Demand was good to very good in places as buyers are trying to fill orders for grazing calves already and bigger feeder cattle are not having many problems finding pen space in feedlots either. Calf prices are pushing the envelope into new territory, and yearlings continue to push higher after the late November- December collapse in the futures.

The CME Feeder Cattle Index moves towards the previous high that set in late September 2023. On Saturday at Ericson (NE) Livestock Market, a load of 602 lb steers with all the bells and whistles sold at 318.50. Even areas not known for high feeder cattle prices are ringing the bell this past week. A package of 518 lbs steers sold at Fairview (IL) Sale Barn on Thursday for 335.00. There has been some sold in that weight range in major feeding areas for around that price, however, they don’t have the freight on them like the ones coming from Illinois to a major feeding area.

In wheat country in Southwest Kansas at Winter Livestock in Dodge City, KS, a package of 426 lb steers sold at 405.00. Once again, record to near record prices at auctions are on the horizon, and yearlings are close. Understandably so as grazing season is approaching it’s the calf that is pushing towards new territory. Weaning and vaccinations still matter and make a difference in price although the discounts might not be as severe as they typically are in the early fall months as the extremely cold two weeks of weather killed several viral respiratory bugs in the air.

The Cattle Inventory Report was released midweek and as expected the cattle herd was reported down 2 pct from a year ago.

The beef cow herd is still in liquidation mode as the cow herd came in at 28.2 million head: the lowest in the data series since inception in the early 1970’s. With 2023 yearly slaughter heifer pace at 3.5 pct above a year ago and beef heifers kept back for replacement down 1 pct from a year ago, there will be less feeder cattle moving into feedyards for the next couple of years. Therefore, feeder cattle prices will be higher unless unforeseen events occur.

The CME Cattle complex reacted sharply on Thursday to the Inventory report and most feeder cattle contracts closed the week 4.00 to 5.00 higher.

The winter storm that came through the second week of January has played havoc on fed cattle slaughter weights. In Nebraska and Kansas, anecdotal evidence reports that cattle shipped recently are from 50 to 100 lbs lighter than their target weight. This will cut into production levels and packers will need to harvest a few more cattle to get to their desired tonnage.

Live sales of negotiated cash fed cattle trade in the Southern Plains sold 3.00 to 4.00 higher at 178.00 to 179.00. In Nebraska, live sales sold 1.00 to 4.75 higher at 176.00 to 178.75, while the dressed sales sold 3.00 higher at 280.00. Choice boxed beef closed the week 7.45 lower at 293.08 while Select was 5.66 lower at 283.47 for the same period.

Weekly Cattle Slaughter under federal inspection estimated at 637K, 19K more than last week and the same as a year ago.

Auction volume this week included 56% weighing over 600 lbs and 43% heifers.