Weekly US Cattle Outlook - Cow Slaughter Up
US - Weekly Cattle Outlook, 13th April 2007 - Weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.
Cow slaughter continues to run well above a year earlier. For the year through the week ending March 24, total cow slaughter was up 15.1%, dairy cow slaughter was up 12.9% and beef cow slaughter was up 17.1% from 12 months earlier. The slaughter rate has increased as we move into spring. For the four-week-period ending March 24, total cow slaughter was up 19.4%, dairy cow slaughter was up 14.6% and beef cow slaughter was up a whopping 24.9% from the same four weeks last year.
There is no question that the expansion made in the cattle herd a year ago has stopped in 2007.
Replacement cow prices pre-tested for bangs, pregnancy and age this week at Oklahoma City showed some heifers weighing 900-1,000 pounds, bred 6-8 months, high-quality sold for $950 per head. Heifers weighing 975-1,200 pounds, bred 5-8 months, average quality sold for $810-890 per head. Three- to four-year-old cows, weighing 900-1,300 pounds, bred 4-6 months, average quality sold for $750-810 per cwt. Five- to six-year-old cows weighing 1,050-1,250 pounds, bred 6-8 months, high-quality sold for $910-1,010 per head.
Wholesale beef prices moved substantially higher this week with Choice beef Friday morning at $171.66 per cwt, up $13.02 per cwt for the week. Select beef was up $8.58 per cwt at $159.37 per cwt Friday morning compared to a week earlier.
The higher beef prices permitted packers to hold some live fed cattle prices above $100 per cwt this week. The weighted average price for live cattle for the five-market-area through Thursday was down $1.27 per cwt at $98.67 per cwt compared to the same period last week. The weighted average carcass price for the five-market-area through Thursday at $159.35 per cwt was down $0.35 per cwt from 7 days earlier.
Feeder steers at Oklahoma City this week were $1-3 per cwt higher than last week. Stocker steers and heifers were unevenly steady with 7 days earlier.
The prices by weight groups for medium- and large-frame number one steers this week were: 400-500 pounds $130-143 per cwt with some thin steers at this weight at $152 per cwt, 500-600 pounds $125.50-136.50 per cwt with some thin at $141.50 per cwt,600-700 pounds $113-129 per cwt, 700-800 pounds $108-116.50 per cwt and 800-1,000 pounds $93-105.85 per cwt.
Lighter weight 400-500 pound steers this week at Oklahoma City were about $5.00 per cwt below a year earlier. However, 700-800 pound yearling steers were $7-8 above 12 months earlier. The relatively tight fed cattle supply and stronger fed cattle prices have completely offset the higher feed prices for 700-800 pound yearlings.
Slaughter this week under Federal Inspection was estimated at 615 thousand head, up 0.7% from a year earlier.
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