USA: Cattle market overview for the 50th week of 2021

Wholesale prices for blocky beef continued to fall. The cost of Choice MEAT in the US market fell by $1.53 over the past week, the price of Select beef fell by $3.96. Choice/Select price leverage rose to $14.73.

Live cattle futures on the Chicago Mercantile Exchange (CME) fell more than 1% on Wednesday due to technical selling, weaker cattle markets this week and concerns about U.S. beef EXPORT demand, traders said .

CME live cattle prices fell 1.725 cents to 136.575 cents a pound in February, just below the contract's 50-day moving average of about 136.7, according to REUTERS.

Commodity funds are net long in CME live and lean hog futures, leaving both markets open to extended liquidation towards the end of the year.

China's customs administration said it would allow imports of some Brazilian beef products to resume, lifting an embargo in place since September 4. Brazil has suspended shipments to CHINA after confirmed cases of atypical bovine spongiform encephalopathy (BSE).

"That could be one reason cattle futures are under more selling pressure today," said Dan Norcini, an independent livestock trader.  

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  WEEKLY CUT CHOICE COST

AVERAGE WEEKLY LIVESTOCK PRICE

Sale of livestock, heads

Average weight

average price

10.12.2021

17.12.2021

Growth per week,%

10.12.2021

17.12.2021

Growth,%

10.12.2021

17.12.2021

Growth,%

Bulls (live weight)

19 391

13 158

-32.1%

1494

1460

-2.3%

139.8

137

-1.8%

Heifers (live weight)

8 344

4461

-46.5%

1 312

1 334

1.7%

139.7

137

-1.6%

Bulls (slaughter. weight)

12 853

7 827

-39.1%

961

947

-1.5%

219.7

218

-0.6%

Heifers (slaughter weight)

2301

2565

11.5%

860

842

-2.1%

219.9

218

-0.8%

WEEKLY WEIGHTED AVERAGE PRICE OF BULLS

BEEF PRODUCTION

Slaughter volume

50 week

49 week

50 week 2020

Growth per week,%

Growth per year,%

657 000

668 000

655 000

-1.6%

0.3%

Live weight

1390

1387

1 394

0.2%

-0.3%

slaughter weight

840

838

842

0.24%

-0.2%

Beef production (million pounds)

550.6

558.6

550.1

-1.4%

0.1%

Beef production (thousand tons)

250.2

253.8

249.9

-1.4%

0.1%

CME, Livestock Futures

Week 49

Week 50

Growth per week,%

December

136.85

134.75

-1.5%

February

138.08

136.43

-1.2%

April

141.88

140.60

-0.9%

CME, Fattener Cattle Futures

January

164.88

160.25

-2.8%

March

165.30

161.70

-2.2%

April

168.20

164.88

-2.0%