Weekly US Cattle Outlook: Beef Production Down09 November 2009
US - Weekly Cattle Outlook, 6th November 2009, a weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.
Beef production for January-September was down 3.2 per cent. The number of cattle slaughtered during this nine month period was down 4.2 per cent. Therefore, cattle weights were one per cent heavier than for this time in 2008.
Due to smaller exports beef consumption per capita was only down 2.7 per cent for January-September 2009 compared to 12 months earlier.
Beef demand at the consumer level was down 2.3 per cent. Live fed cattle demand was sharply below a year earlier with a loss of 8.5 per cent from 12 months earlier. The reason why live fed cattle demand was down much more than consumer demand was less exports and a very weak hotel and restaurant trade.
Feeder steers and heifers were steady to $1.00 per cwt higher and steer and heifer calves were $1-3 per cwt higher this week than last at Oklahoma City.
The prices by weight groups for medium and large frame Number One steers this week at Oklahoma City were: 400-500 pounds $110-126 per cwt, 500-600 pounds $98-112.50 per cwt, 600-700 pound calves $83.50-99.50 per cwt, 600-700 pound yearlings $94-100.50, 700-800 pounds $93-96.75 per cwt and 800-1,000 pounds $87-95 per cwt.
Calves weighing 400-500 pounds are $4-5 per cwt and 700-800 pound steers are also $4-5 per cwt below a year earlier.
Fed steers this week were $3.66 per cwt below a year earlier.
Replacement cow prices show only a modestly higher price than slaughter cows. This week at Oklahoma City Replacement 1-4 years old weighing 1,000-1,175 bred 5-8 months, average to high quality blocks sold for $700-800 per head.
Wholesale beef prices Friday morning showed Choice at $140.87 per cwt down $0.03 per cwt from a week earlier. Select beef at $135.55 per cwt down $0.09 per cwt from seven days earlier.
Live fed steer weighted average price for the five-market area for the week through Thursday at $86.44 per cwt down $0.53 per cwt from last week. Weighted average negotiated carcase prices for the week through Thursday for the five-market area were $134.24 per cwt up $0.38 per cwt from seven days earlier.
Slaughter this week under Federal Inspection was estimated at 629 thousand head up 0.8 per cent from a year earlier.
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