As indicated last week the February 1 cattle on feed report came in a bit more bullish than the trade estimates. The trade expected the number on feed to be up 2.3 percent the official estimate was an increase of 2 percent. The placement on feed during January official estimate was an increase of 5.7 percent, the trade estimate was for a 9.5 percent increase. Fed marketing during January were up by 0.9 percent according to USDA, the trade estimate was for a 1.7 percent increase.

The futures market responded with increases of $0.50 to $1.50 per cwt at the close of Monday following the release of the report for the live cattle contract.

Even though placements on feed during January were up 5.7 percent all of the increase plus some was in lighter weight cattle. The number placed on feed during January weighing less than 600 pounds was up 25 percent, the number placed on feed weighing 600-699 pounds was up 19.7 percent, but the number placed on feed weighing 700-799 pounds was down 3.7 percent and the number placed on feed weighing 800 pounds or more was down 9.2 percent from January of 2007.

Cold storage stock of beef at the end of January was down 8 percent from the end of December and down 5 percent from a year earlier.

Beef demand at the consumer level for the three-month period of November 2007 to January 2008 was down 1.8 percent from a year earlier. The weakness is probably due to high energy costs and large competition meat suppliers. The good news about demand in the beef industry is that live fed cattle demand for these three months of November to January was up 2.6 percent from 12 months earlier. Large exports of beef and population growth are probably the main reasons for the stronger live fed cattle demand.

Wholesale beef prices Friday morning showed Choice beef at $150.03 per cwt up $1.65 per cwt from a week earlier. Select beef price Friday morning at $146.51 per cwt up $0.07 per cwt from seven days earlier.

Feeder steers steady to $1.00 per cwt higher, higher prices on cattle weighing over 800 pounds. Striker steers and steer calves steady to $2.00 per cwt lower. Feeder and striker heifers as well as heifer calves steady to $2.00 per cwt higher at Oklahoma City.

The price ranges by weight groups for medium and large frame number 1 steers at Oklahoma City this week were; 400-450 pounds $121-132 per cwt, 500-600 pounds $113.25-133 per cwt, 600-700 pounds $107.50-116 per cwt, 700-800 pounds $100-110.25, and 800-1000 pounds $90-102.75 per cwt.

Retail Choice beef prices in January at $4.10 per pound were down 0.3 percent from December, but up 4.1 percent from January of 2007. The five-market steer fed cattle prices in January at $92.10 per cwt were down 0.5 percent from December but up 5.5 percent from January a year earlier.

The futures market for live cattle in now above $100 per cwt for all contracts after August 2008. The high priced fed will eventually get fed cattle above $100 per cwt live. However, remember the supply of feeder cattle is basically the same now as it was a year ago and the cow herd is down only 1 percent for beef cows.

The cash five market live fed cattle price this week through Thursday at $92.19 per cwt up $2.29 from a week earlier. The negotiated carcass prices for the five market area through Thursday at $147.90 per cwt up $2.00 per cwt from 7 days earlier.

Slaughter this week under Federal Inspection was estimated as 630 thousand head, up 1.1 percent from 12 months earlier.

TheCattleSite News Desk