USA: Cattle market overview for the 27th week of 2021

The cost of Choice meat in the US market fell by $3.38 in a week, the price of Select beef decreased by $2.65. Choice/Select price leverage dropped to $21.18.

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The Cattle Marketing Clearing House has updated the Cattle Fattening Profit Index and break-even forecasts. Higher cattle prices have improved the outlook for fatteners in the coming months. Live cattle futures contracts range from $120 in August to over $130 in December. These levels mean that feedlots are likely to have positive returns in 2021.  

One caveat to pricing fattening cattle for the remainder of the year is the price to consumers. Retail prices for beef have already risen and are expected to rise further in the near future. This begs the question of whether demand is strong enough to support current cattle prices. Demand for beef in the domestic market has been quite high for the last couple of years. In addition, beef exports have increased sharply in 2021, so global demand for US beef also offers support to the market. Feed costs are also expected to come down with a new corn crop this fall.  

WEEKLY CUT CHOICE COST

AVERAGE WEEKLY LIVESTOCK PRICE

 

 

Sale of livestock, heads

 

 

Average weight

 

average price

 

 

as of 02.07.2021

as of 09.07.2021

Growth,%

as of 02.07.2021

as of 09.07.2021

Growth,%

as of 02.07.2021

as of 09.07.2021

Growth,%

Bulls (live weight)

25 255

25 148

-0.4%

1451

1438

-0.9%

124

122

-1.5%

Heifers (live weight)

13040

10540

-19.2%

1292

1263

-2.2%

123.35

120.32

-2.5%

Bulls (slaughter. weight)

10969

15211

38.7%

926

929

0.3%

198.14

198.48

0.2%

Heifers (slaughter weight)

2385

3020

26.6%

824

826

0.2%

197.98

198.25

0.1%

WEEKLY WEIGHTED AVERAGE PRICE OF BULLS

BEEF PRODUCTION

 

 

as of 10.07.2021

A week earlier

A year ago

Growth per week,%

Growth per year,%

(approximately)

(approximately)

(actually)

Slaughter volume

623 000

623 000

581 000

0.0%

7.2%

Live weight

1351

1 351

1 365

0.0%

-1.0%

slaughter weight

818

818

831

0.0%

-1.6%

Beef production (million pounds)

508.3

508.3

481.8

0.0%

5.5%

 

CME, livestock futures

 

Week 26

Week 27

Growth per week,%

August

122.00

119.23

-2.3%

October

128.08

125.58

-2.0%

December

132.78

130.90

-1.4%

CME, fattening cattle futures

August

157.05

159.18

1.4%

September

159.43

161.83

1.5%

October

161.48

163.70

1.4%