Weekly US Cattle Outlook - Demand For All Meats Up

US - Weekly Cattle Outlook, 9th November 2007 - Weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.
calendar icon 12 November 2007
clock icon 3 minute read

The demand for all meats but broilers for January - September was up from a year earlier. Beef at the consumer level was up 0.2 percent for the first nine months of 2007, pork was up 1.4 percent and turkey was up 2.3 percent. Broiler demand at the consumer level for this period was down 2.3 percent from 12 months earlier.

The good news continues to be live fed cattle and live hog demand growth. Live fed cattle demand for January-September was up 3.3 percent and live hog demand for this period was up 3.0 percent, from a year earlier. The increase in beef exports is an important factor contributing to the live fed cattle demand growth.

Cow slaughter for the year through the week ending October 20 was up 7.1 percent from 2006. Dairy cow slaughter was up 7.4 percent and beef cow slaughter was up 6.9 percent. For the four weeks ending October 20, total cow slaughter was up 4.3 percent, dairy cow slaughter was up 6.3 percent and beef cow slaughter was up 2.7 percent. The smaller percentage increase in slaughter recently is due mostly to large slaughter numbers a year earlier due to dry weather in a significant part of beef-cow country. The continuation of the large beef cow slaughter this year is due at least in part to the dry weather in the southeastern U.S.

Female slaughter of cattle for January - September of this year was up 3.1 percent from last year as a percent of female slaughter in the male-female mix. We believe the odds are high that the cow herd in January 2008 will be a little smaller than 12 months earlier.

Feeder steers at Oklahoma City were steady to $2 per cwt lower with decline under 800 pounds. Feeder heifers were steady in a light test. Steer calves were steady and heifer calves steady to $2 lower. All comparisons are with a week earlier.

The range in prices by weight groups for medium and large frame Number 1 steers at Oklahoma City this week were: 400-500 pounds $117.50-130 per cwt, 500-600 pounds $107.50-124.25 per cwt, 600-700-pound calves $104-112 per cwt, 700-800-pound calves $101.75-107.25 per cwt, 650-700 pound yearlings $110.25-111.75 per cwt, 700-800-pound yearlings $106.25-112.50 per cwt, and 800-950 pounds $101.50-110.50 per cwt.

Wholesale beef prices this Friday morning showed Choice beef at $140.94 per cwt up $2.56 per cwt from a week earlier. Select beef was up $2.07 per cwt at $129.13 per cwt compared to seven days earlier.

The weighted average live price for fed cattle this week for the five-market area at $89.65 per cwt was down $0.25 per cwt from a week earlier. The weighted average carcass price for the five-market area was up $0.25 per cwt at $142.00 per cwt compared to seven days earlier.

Slaughter this week under Federal Inspection was estimated at 637 thousand head, down 1.7 percent from a year earlier.

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