US Cattle Outlook: Cattle on Feed Report More Positive

US - Weekly Cattle Outlook, 24th December 2009, a weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.

29 December 2009

2 minute read

North America

Ron Plain

The 1 December Cattle on Feed Report came in a bit more positive than the trade estimates. The number on feed was down 0.6 per cent from a year earlier. The trade estimate was for an increase of 0.3 percent. Placements on feed during November were down 8.5 per cent. The trade estimate was for a decline of 4.8 per cent. Fed cattle marketed during November were up 3.6 per cent. The trade estimate was for an increase of 2.0 per cent.

The futures market responded with modest increases in prices on Monday and Tuesday following the release of the report.

The weights of cattle placed on feed during November shows the number placed weighing less than 600 pounds was down 9.3 per cent, the number placed weighing 600-699 pounds was down 10.3 per cent, the number placed weighing 700-799 pounds was down 12.4 per cent, and the number placed weighing over-800 pounds was up 1.4 per cent.

The number of cows slaughtered for 2009 through the week ending 5 December was down 0.2 per cent from 2008 but up 8.4 per cent from the same period in 2007.

The number of dairy cows slaughtered during 2009 through the week ending 5 December was up 10.1 per cent from a year earlier and up 13.4 per cent from 2007. The number of beef cows slaughtered in 2009 through the week ending 5 December was down 7.4 per cent from a year earlier but up 4.4 per cent from two years earlier.

We expect the dairy cow herd to be down two to three per cent and the beef cow herd to be down one to two per cent on 1 January, 2010, from 12 months earlier.

Cold storage stocks of beef on 30 November were down 11 per cent from a year earlier but up one per cent from 31 October.

Wholesale beef prices Thursday morning showed Choice beef at $138.48 per cwt, down $0.46 per cwt and Select beef at $131.04 per cwt, up $0.19 per cwt from last Friday.

The weighted average live fed cattle price for steers through Wednesday at $82.04 per cwt was up $1.75 per cwt from Thursday of last week. The weighted average negotiated carcase price for steers for the five-market area through Wednesday at $131.45 per cwt was up $3.95 per cwt from Thursday six days earlier.

Slaughter this holiday-shortened week under Federal Inspection was not available.