![]() ![]() The decline of forward contracts pushes more cattle into the cash market where they are sold either as grid or negotiated prices. The total number of forward contracted cattle has declined as deferred futures and packer basis bids fail to provide sellers a profit margin for feeding. Packers will always be willing to take a price risk off the producer’s plate in return for an extra margin. The driver in forward purchases of cattle will always be forward sales of beef. Basis levels will move up and down as processors want to add to forward contracts or not. ![]() The report is also reflective of the current status of fed cattle offerings in each area.įorward Cattle Contracts: Forward contracts will always bear some relationship to the corresponding futures month closest to the delivery month for the cattle. The Weekly Steer and Heifer Grading Report is indicative of regional supplies of choice and prime cattle and often is determinative of regional differences is live price. The combined steer and heifer weights can easily be influenced when the proportion of steers to heifers in the weekly slaughter changes. Carcass weights will be fundamental in determining total beef production. The latest report shows carcass weights at 860# up 2# from prior week and 4# under last year. The report is published each Tuesday and includes the previous week’s change in carcass weights and quality grading. The Comprehensive Fed Cattle Weekly Report offers the most current information on the current status of fed cattle being harvested. Beef producers are able to measure the marketing price for their cattle compared to the national averages. The report summarizes the distributed price levels for each category of sale such as Negotiated/Formula/Forward Contracts. On Tuesday of each week, USDA releases a weighted average price report for all cattle sold the previous week. Prices opened lower but closed flat with Friday’s close.īenchmarking. The weather forecast is pointing to some decline in the extreme temperatures of this month.Ĭattle Futures. Box prices normally find a bottom for the summer following Labor day. The upcoming weeks will continue smaller slaughter levels leading up to Labor day. The summer heat wave is doing little to help beef demand. The slaughter reduction from last year is dramatic with this past week’s slaughter 47,000 head under last year. The slaughter this past week was 619,000 down 5,000 head from the previous week further impacting processing margins as cost/head to process moves higher in the nation’s beef plants. The spread between the worst pen in Kansas and the top sales in Nebraska could be $8 cwt., but for a proper comparison, the returns from all the grid and formula cattle need to be included. ![]() When considering all cattle sold in Kansas last week benchmarked against all cattle sold in Nebraska, the average price obtained by Kansas owners would not be $8 under Nebraska. The reality is cattle are moving from Kansas to Nebraska and Colorado at much narrower spreads that those found on USDA reports. Freight prices are high and there would be some loss of carcass yield but the numbers don’t fit. The notion that cattle in Kansas are worth $178 when their northern mates bring $186 is preposterous. Kansas is not without high quality cattle. Dressed sales were once again mainly at $294-5 with a few sales down to $292. Northern live sales were mainly $186-188 while southern sales were mainly at $179 with extremely light volumes in all areas. For last week most prices were steady to $1 lower. Asking prices will be higher in all areas as packers enter the week with short inventories. The Monday show lists were down for Texas and Kansas and up for Nebraska. ![]()
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