USDA national feeder and stocker cattle summary- week ending 08/02/2002
Compared to last week, feeder cattle and calves sold steady to $2.00 higher through the mid-section of the United States. Southeastern markets traded $1.00-$4.00 lower on pressure from sharply heavier receipts. It seems that many producers who were holding cattle back finally accepted the fact that the market is lower and shipped their stock, hoping that improved local pasture conditions would support prices. The regional demand in this area was not nearly enough to hold the market and without significant orders from further west, prices faltered.
USDA report releases were the major market force this past week. On Monday morning, the crop production report pegged this year’s corn crop at 8.89 billion bushels which was a 7 % drop from a year ago and the lowest since 1995, soybean production was estimated to be 9 % below last year’s. This news rallied Chicago Board of Trade grain futures and was very bearish for the feeder cattle market.
However, early-week auctions managed to hold at least steady and mostly shrug-off the pressure. Instead, the feeder cattle industry looked forward to the other major USDA report release of the week, the cattle-on-feed report. Early expectations were bullish and Friday’s results turned out to be much of what analysts expected. On-feed numbers as of August 1st were 93 % of last year, placements in July were also 93 % and marketings were 107 % of the same time a year ago.
Support from the expectations of this information along with a surprisingly strong CME futures board pushed feeder cattle prices higher. Also, direct slaughter cattle trading turned higher at midweek at $64.00 live and $101.00-$102.00 dressed, which gave feeder buyers a little more confidence in paying higher prices for feedlot placements.
Dry weather continues to drive cattle to market sooner than normal. July receipts at the Torrington, Wyoming salebarns were up 65 % over last year. However, word from out in the country is that there is still a lot of big strings of calves and yearlings that have not been contracted or sold on the video. Many of these buyers and sellers are only a few dollars apart, but both feel that they need to draw the line somewhere. This week’s reported auction volume included only 34 % over 600 lbs and 42 % heifers. Note: Prices are expressed as weighted averages, where available.
For the latest US slaughter and export figures, go to http://www.leatherbiz.com/ViewRelease.asp?mi=1&ID=2875
