USDA national feeder and stocker cattle summary – week ending 08/02/2002
According to USDA livestock and grain market news, feeder steers and heifers sold at a steady $2.00 higher than last week. This makes 5 consecutive weeks that the majority of the reported sales were higher.
The price spread on yearlings and short yearlings has narrowed. In many places there is only a 6.00 per hundred weight difference between 600 and 950 steers.
Feedlots are aggressively attempting to keep a high pen occupancy rate for most efficient operations. This is difficult due to short supplies as placement numbers continue to run 15% to 20% below the year ago figures, according to the past few Cattle on Feed Reports. Cattle feeders are putting out more money to obtain starting materials and other costs are also soaring. During this period yearling prices are up $3.00 to $4.00 and corn prices have jumped around 25 cents per bushel.
December futures closed today at 68.75 leaving very little hedging margin. Drought conditions continue to become more severe and widespread. The US economy is not strong as each week sees more big companies filing Chapter 11 bankruptcy.
Year to date beef production is up four percent from a year ago due primarily to heavy carcass weights. Finished cattle held steady this week at $63.00 live and $99.00 in the beef, but cut outs were lower late in the week.
A year ago slaughter cattle were quoted at 70.00. This week’s reported auction volume included 40 % over 600 lbs and 44 % heifers.
