USA: Cattle market overview for the 16th week of 2021

The cost of Choice meat in the US market rose by $1.46 in a week, the price of Select beef fell by $1.56. Choice/Select leverage increased to $11.64.

Cattle futures continue to decline as corn prices rise. On Thursday, US cattle futures closed lower for the 10th time in 11 sessions, under pressure from a prolonged liquidation driven by rising corn prices that threatens livestock profits, traders said.

June futures for livestock on the Chicago Mercantile Exchange fell 1,400 cents at 115,850 cents a pound. August CME feed cattle futures fell 3,550 cents to 148.375 cents a pound as Chicago Board of Trade corn futures hit a daily limit near an eight-year high of over $6 a bushel.

Rising prices for corn, the staple feed grain for cattle, could encourage feedlot operators to cut their losses by selling more cattle to meatpackers.

“The feedlots have lost any opportunity to trade normally with processors. They just want to sell the cattle as soon as possible to keep costs down,” says Dan Norcini, an independent trader.

The sell-off in cattle futures comes despite rising wholesale beef prices. Boxed beef cuts rose $1.85 to $282.31 a hundred pounds on Thursday, a 10-month high, while single cuts rose $1.81 to $273.69, according to the USDA. dollar.

WEEKLY CUT CHOICE COST

AVERAGE WEEKLY LIVESTOCK PRICE

 

Sale of livestock, heads

 

 

Average weight

 

average price

 

 

as of 04/16/2021

as of 04/23/2021

Growth,%

as of 04/16/2021

as of 04/23/2021

Growth,%

as of 04/16/2021

as of 04/23/2021

Growth,%

Bulls (live weight)

23 153

26 115

12.8%

1433

1496

4.4%

122

121

-0.5%

Heifers (live weight)

8357

11067

32.4%

1295

1306

0.8%

121.11

120.95

-0.1%

Bulls (slaughter. weight)

15161

8776

-42.1%

940

942

0.2%

195.63

192.11

-1.8%

Heifers (slaughter weight)

7688

2340

-69.6%

851

836

-1.8%

195.85

192.5

-1.7%

WEEKLY WEIGHTED AVERAGE PRICE OF BULLS

BEEF PRODUCTION

 

as of 24.04.2021

A week earlier

A year ago

Growth per week,%

Growth per year,%

(approximately)

(approximately)

(actually)

Slaughter volume

665 000

640 000

470 000

3.9%

41.5%

Live weight

1372

1375

1 357

-0.2%

1.1%

slaughter weight

829

830

813

-0.1%

2.0%

Beef production (million pounds)

550.2

530.2

381.1

3.8%

44.4%

 

CME, livestock futures

 

Week 15

Week 16

Growth per week,%

April

120.85

117.85

-2.5%

June

119.18

115.73

-2.9%

August

119.15

116.85

-1.9%

CME, fattening cattle futures

March

139.63

133.85

-4.1%

April

143.73

137.68

-4.2%

May

154.55

149.90

-3.0%