USA: Cattle market overview for the 29th week of 2022

US cattle futures closed higher on stronger beef prices  

Livestock futures on the Chicago Mercantile Exchange (CME) closed higher on Friday, helped by strong beef prices ahead of US government reports released after the market closed, REUTERS reported, citing traders.

August livestock futures on the CME rose 1.650 cents to 137.375 cents a pound, while the most active October contract rose 2.025 cents to 143.0 cents.

“The market has picked up because product prices have been high and some concerns about demand have subsided,” said Altin Kahlo, an economist at Steiner Consulting Group.

Wholesale beef prices declined on Friday afternoon, according to the United States Department of Agriculture (USDA). But on Tuesday, the price reached a three-month high, contrary to the seasonal trends of the summer decline.

Feeder futures on the CME also rose as corn prices fell to multi-month lows, signaling lower feed costs. August fattening futures rose 3.275 cents to 181.550 cents a pound.

Following the CME closure, the USDA said 1.629 million cattle were placed on feedlots in June, down 2% from a year earlier. Analysts polled by Reuters, on average, expected a larger drop in the number of placements - by 5%, or 1.586 million heads.

Some analysts say hot, dry weather could bring more livestock to feedlots this summer than expected as pasture conditions deteriorate.

The USDA said the total number of fattening cattle as of July 1 was 11.340 million HEAD, up slightly from a year ago and in line with expectations. In its Semi-Annual Cattle Inventory Report, the USDA estimated the U.S. cattle and calf population as of July 1 at 98.8 million head, down 2% from a year ago.

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WEEKLY CUT CHOICE COST

CATTLE SALES

Sale of livestock, heads

Average weight

07/15/2022

07/22/2022

Growth per week,%

07/15/2022

07/22/2022

Growth,%

Bulls (live weight)

28 418

16 225

-42.9%

1445

1452

0.5%

Heifers (live weight)

10 516

12 787

21.6%

1 292

1 292

0.0%

Bulls (slaughter. weight)

11 063

8 877

-19.8%

916

918

0.2%

Heifers (slaughter weight)

4083

3 260

-20.2%

822

827

0.6%

WEEKLY WEIGHTED AVERAGE PRICE OF BULLS

BEEF PRODUCTION

Slaughter volume

29 week

29 week 2021

Growth per year, %

Live weight

665 000

655 000

1.5%

slaughter weight

1343

1356

-1.0%

Beef production (million pounds)

812

821

-1.1%

Beef production (thousand tons)

538.8

536.6

0.4%

CME: Live Cattle Futures

Week 28

Week 29

Growth per week,%

August

134.93

137.38

1.8%

October

139.55

143.00

2.5%

December

145.43

148.18

1.9%

Futures for fattening cattle

August

176.35

181.55

2.9%

September

179.68

184.48

2.7%

October

182.45

187.00

2.5%

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