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Weekly US Cattle Outlook: Beef Demand Down

13 July 2009
Ron Plain
Ron Plain

US - Weekly Cattle Outlook, 10th July 2009 - Weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.

Demand for beef at the consumer level for January-May was down 0.9 per cent. However, the total demand for beef in the U.S. was probably down more than the 0.9 per cent because of weak hotel and restaurant demand.

Demand for pork at the consumer level was up 1.5 per cent, for broilers down 5.3 per cent and for turkey up 4.2 per cent.

Demand for live fed cattle was down 8.7 per cent in January-May compared to a year earlier. The weaker demand for fed cattle than consumer beef demand was believed to be caused by larger net beef imports and the weak hotel and restaurant trade.

Live hog demand for January-May was down 4.9 per cent. The weak live hog demand was due mostly to smaller exports this year than last year.

Cash fed cattle prices at the current time are $7-8 per cwt below a year earlier. As a result, 750-800 pound feeder steers are $11-12 per cwt lower than this time last year. Steer calves weighing 450-500 pounds are also $10-12 per cwt below a year earlier.

Total cow slaughter for the year through the week ending June 27 was up 1.7 per cent, dairy cow slaughter was up 15.8 per cent but beef cow slaughter was down 8.5 per cent from 12 months earlier. For the four-week period ending June 27, total cow slaughter was up 1.4 per cent, dairy cow slaughter was up a whopping 36 per cent, but beef cow slaughter was down 19.4 per cent. The large dairy cow slaughter is due to the dairy buyout program. The smaller beef cow slaughter is believed to be due to good pastures and ranges especially in the Midwest and southeastern states.

Feeder steers and heifers at Oklahoma City this week were $1-2 per cwt higher than a week earlier. Stocker cattle and calves were not well tested but few sales noted with a steady to high undertone compared to seven days earlier.

The prices by weight groups for medium- and large-frame number One Steers this week at Oklahoma City were: 450-500 pounds $110-117.25 per cwt, 500-600 pounds $105-116 per cwt, 600-650-pound calves $102-105.75 per cwt, 650-700-pound yearlings $104-105 per cwt, 700-800 pounds $101-105 per cwt and 800-1,000 pounds $94.25-101.50 per cwt.

The live fed cattle weighted average price for the five-market area through Thursday at $81.28 per cwt was up $0.64 per cwt from a week earlier. The weighted average negotiated carcass price for the five-market area through Thursday at $129.39 per cwt was down $1.61 per cwt from seven days earlier.

Wholesale Choice beef prices Friday morning at $137.40 per cwt were down $0.53 per cwt from last Friday. Select beef at $132.51 per cwt was up $0.15 per cwt from a week earlier.

Slaughter this wee under Federal Inspection was estimated at 628 thousand head, down 10.2 per cent from 12 months earlier.

TheCattleSite News Desk



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