CATTLE OUTLOOK – Ron Plain and
Scott Brown
Ag Economics, MU April
3, 2015
This week’s fed cattle prices were
the highest since early January.
Through Thursday, the 5-area
average price for slaughter steers sold
on a live weight basis was
$166.67/cwt, up $2.67 from last week’s
average and up $15.24 from a year
ago. The 5 area average dressed
price this week for steers was
$264.72/cwt, up $4.72 for the week.
The March jobs report is not
encouraging. The economy added only
126,000 non-farm jobs last
month. That is the lowest monthly number
since December 2013. Slow
growth is not good for meat demand.
USDA’s March Prospective Plantings
report put 2015 corn acres at
89.199 million, down 1.5% from
last year; soybean planting were
predicted to be 84.635 million
acres, up 1.1%; and wheat plantings at
55.367 million acres, down 2.6%
compared to a year earlier. USDA’s
estimate of corn acres is higher
than the average of pre-release trade
forecasts while soybean and wheat
acres are lower. The May corn
futures lost 4 cents this week but
May soybean futures gained 19
cents.
This morning the choice boxed beef
cutout value was $255.97/cwt, up
$5.54 from the previous Friday and
up $26.80 from a year ago. The
select carcass cutout was
$249.47/cwt this morning, up $2.85 from last
week and up $31.02 from a year
ago.
Cattle slaughter this week totaled
525,000 head, down 1.7% from the
week before and down 10.5% from
the same week last year.
Year-to-date cattle slaughter is
down 7.3% and year-to-date beef
production is down 5.2% compared
to the same period last year.
The average steer dressed weight
for the week ending on March 21 was
871 pounds, unchanged from the
week before and up 15 pounds compared
to the same week last year.
Steer weights have been above year-ago
each week since June 14, 2014.
Feeder cattle prices at Oklahoma
City were mostly steady to $3 higher
this week. Prices for medium
and large frame #1 steers by weight
group were: 400-450# $312-$328,
450-500# $276-$316, 500-550#
$289-$296, 550-600# $257-$284,
600-650# $230-$262.25, 650-700#
$233-$252, 700-750# $217.50-$235,
750-800# $205-$220.50, 800-900#
$192-$214, and 900-1000#,
$184.50-$198/cwt.
There was no futures trading today
due to the Good Friday holiday. On
Thursday, the April live cattle
futures contract settled at
$163.02/cwt, up 40 cents for the
week. June fed cattle settled at
$153.37/cwt, also up 40 cents from
the previous Friday. August fed
cattle lost 13 cents this week to
settle at $149.82/cwt. October live
cattle ended the week at
$151.40/cwt.
The April feeder cattle contract
ended the week at $220.37/cwt, up
$1.10 for the week. May
feeders settled at $217.45/cwt which is 67
cents lower than the Friday
before. The August contract ended the week
at $218.55/cwt.
