Fed Cattle Recap | Cash prices continue to falter
Cash prices for fed cattle were mostly $3-$7 lower on smaller volume, total harvest encouraging.
Ed Czerwien, BEEF Magazine†
Jun 30, 2020
The cattle market continues to adjust to the changing dynamics both here and abroad. With packing plants running at near capacity and wholesale prices continuing to erode, the beef pipeline is full. Reports indicate great product movement for Fatherís Day. The July 4 holiday is this weekend, another bright spot in beef demand.
But the dog days of summer are upon us. If youíre tired of hearing about the burdensome backlog of long-fed cattle, take a deep breath because it may well be 2021 before we work through all those heavyweight cattle. The market will continue to struggle as it finds price levels necessary to keep beef moving.
The Five Area formula sales volume for the week ending June 27 totaled 247,951 head, compared with about 234,000 the previous week. The Five Area total cash steer and heifer volume was 75,555 head, compared to about 97,000 head the previous week.
Nationally reported forward contract cattle harvest was about 42,000 head for the week. The nationally reported 15- to 30-day delivery was 2,459 head along with 14,198 head the previous week.
Now looking at prices, the weekly weighted average cash steer price for the week ending June 27 for the Five Area region was $96.21 per cwt, $4.57 lower compared with the previous week. The same week last year, it was $110.13 which was about steady with the week prior. The current Five Area weighted average live formula price was $105.43 for the week.
The weighted average cash dressed steer price was $154.78 per cwt, which was $5.92 lower. The Five Area weighted average formula price was $167.58, which was $9.18 lower.
The estimated weekly total federally inspected cattle harvest...
more, including audio [3:52 min.]†