USA: Week 47 2021 Cattle Market Overview

29.11.2021

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USA: Week 47 2021 Cattle Market Overview

Photo is illustrative in nature. From open sources.

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The cost of Choice meat in the US market decreased by $1.6 per week, the price of Select beef increased by $1.55. Choice/Select price leverage rose to $17.73.

Seasonally, this time of the year, the northern plains have the highest volume of forage cattle sales. The value of fodder livestock largely depends on its potential in the feedlot. This leads to a drop in prices, and the drop in prices now compared to last year is much larger.

One factor influencing this decline is feed cost. The price of corn, for example, is now much higher than it was a year ago. A higher value of profit means that the price drop will be more pronounced or steeper. However, highlighting only the price of corn seems to mask many other factors that could influence the price decline. Attempts to build a relationship show a group of observations with a price drop of 5-15 cents for 500-600 lb steers. Years of high corn prices can be reflected in corresponding high or low price declines. Thus, the correlation between the price of corn and the recession is low or weak. The price of hay (or similar roughage) will also be of great importance, especially for lighter animals.

The price difference between bulls and heifers this fall is also significant compared to last year. From a feedlot point of view, heifers will be smaller compared to steers of the same weight, as they are expected to have lower gains and lower final weights. The greater the cost of feed (and weight gain), the wider the spread in prices.

The last months of 2021 did not bring improved pasture conditions in the US. Therefore, reduced feed supplies will be part of the reason for the steeper price declines we are seeing now. Poor grazing conditions also limit the ability of producers to keep heifers. In October, the number of fattening heifers decreased by almost 40% compared to 39% last year. Feedstock deliveries outside feedlots were lower in October than in 2020 and 2019. The November fattening cattle availability report was in line with trading expectations. Stocks of fodder decreased slightly compared to last year, the number of placements of livestock for fattening increased by 2%. Difficult grazing conditions encourage producers to send livestock to feedlots faster, which partly explains the higher number of placements. Continued higher placement means

The markets finished the week in different directions. In the cash markets, livestock has risen in price, while block beef prices have declined. Prices for fodder livestock were mixed; lower in the north and higher in the south. Live cattle futures rose, which was reflected in feed cattle futures. The price of corn has decreased over the week, while the cost of DDGS (Dry Wheat Feed Wheat Dregs) remains unchanged.

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WEEKLY CUT CHOICE COST

AVERAGE WEEKLY LIVESTOCK PRICE

Sale of livestock, heads

Average weight

average price

11/19/2021

11/26/2021

Growth per week,%

11/19/2021

11/26/2021

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